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Transcript
Guide For Starting and Managing
School-Based Enterprises
ACKNOWLEDGEMENTS
Special recognition is given to the following individuals who were instrumental in providing ideas,
materials, and support for the development of this SBE Operational Guide.
Don Immen
Westland John Glenn High School
Westland, Michigan
Jennifer Glenn
Frito-Lay, Inc.
Plano, Texas
Chuck Blood
Cherry Creek High School
Englewood, Colorado
Beth O’Steen
MarkED
Columbus, Ohio
Carol Jackson
Enumclaw High School
Enumclaw, Washington
Debbie Popo
Hamilton Township High School
Columbus, Ohio
Fae Beth Zuckerman
Cinnaminson High School
Cinnaminson, New Jersey
DECA Inc., with the sponsorship of Pepsico/Frito-Lay, Inc. has undertaken this project to create a national
network for school-based enterprises. The project is designed to encourage educators and administrators to
share their experiences in establishing and managing such businesses and thus improve and expand the use
of this excellent tool. As we move forward with this project, we expect to create a national resource for the
growth and development of school-based enterprises.
In addition to those advisors who served on the writing committee, other DECA advisors who served on the
focus group for this project were: Stan Rosen, North St. Paul High School; Kima Light, Hanks High
School; Debbie Wilson, Walker High School; Ted Seiler, Eaglecrest High School; and Dennis Kelley,
Southington High School. These advisors, along with those on the writing committee, utilize a variety of
operating, merchandising and curriculum approaches for integrating the operation of a school store into the
marketing education curriculum. Their school-based enterprises are diverse in nature – a bank, a 7-Eleven,
a high school cafeteria, a supermarket, a gift shop, and several general merchandise operations. This wealth
and variety of knowledge/expertise have been essential to the success of this project.
DECA is grateful to the more than 2,000 advisors who responded to the surveys, providing details on their
school-based enterprise. According to the results of the surveys accounting practices, curriculum resources,
identification of vendors, and justifying operation to administration are the areas of greatest need for SBEs.
In response to these needs, this operational guide and the SBE merchandise mart were created to provide
support in those critical areas for SBEs.
Guide for Starting and Managing
School-Based Enterprises
Table of Contents
I.
II.
Pages
INTRODUCTION...........................................................................................................................4-5
SBE STARTUP............................................................................................................................6-12
A. Create a Business Plan..................................................................................................................6
B. Learning Activities ......................................................................................................................7
C. Sample Proposal for Starting a School-Based Enterprise .....................................................................7
D. Steps for Opening a School Store ...................................................................................................8
E. References ................................................................................................................................12
III. JOB INTERVIEW .......................................................................................................................13-14
A. Job Descriptions .......................................................................................................................13
B. Application/Interview..................................................................................................................13
C. Learning Activities.....................................................................................................................14
D. References.................................................................................................................................14
IV. MARKET RESEARCH................................................................................................................15-17
A. Determine What to Buy...............................................................................................................15
B. Budget ...................................................................................................................................16
C. Target Market............................................................................................................................16
D. Learning Activities.....................................................................................................................16
E. References.................................................................................................................................16
V.
BUYING AND PRICING..............................................................................................................18-20
A. Research Vendors.......................................................................................................................18
B. Determine Cost Code/Markups.....................................................................................................18
C. Services ...................................................................................................................................18
D. Opening Accounts/Establishing Credit...........................................................................................19
E. Terms ...................................................................................................................................19
F. Delivery...................................................................................................................................19
G. References.................................................................................................................................19
VI. RECEIVING...............................................................................................................................21-22
A. Receiving Process .....................................................................................................................21
B. Stocking and Ticketing...............................................................................................................21
C. Handling Discrepancies...............................................................................................................21
D. Handling Returns/Damaged Products.............................................................................................21
E. References.................................................................................................................................21
VII. INVENTORY CONTROL.............................................................................................................23-25
A. Perpetual Inventory.....................................................................................................................23
B. Physical Inventory......................................................................................................................23
C. Security/Shrinkage.....................................................................................................................23
D. Dealing with Shortages...............................................................................................................24
E. Learning Activities.....................................................................................................................25
F. References.................................................................................................................................25
VIII. SERVICES ...............................................................................................................................26-27
A. Credit ...................................................................................................................................26
B. Gift Wrap.................................................................................................................................26
C. Delivery...................................................................................................................................26
D. Parties/Catering.........................................................................................................................26
E. Special Orders...........................................................................................................................26
F. Gift Certificates.........................................................................................................................26
G. Coupons...................................................................................................................................26
H. Other Services...........................................................................................................................26
I. References.................................................................................................................................26
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IX. CASH HANDLING......................................................................................................................28-30
A. Cash Register............................................................................................................................28
B. Making Change.........................................................................................................................28
C. Accepting Checks.......................................................................................................................28
D. Credit Cards..............................................................................................................................28
E. General Guidelines.....................................................................................................................29
F. References.................................................................................................................................30
X.
ACCOUNTING/BOOKKEEPING...................................................................................................31-34
A. The Basics................................................................................................................................31
B. Accounting Records....................................................................................................................31
C. Accounting Software...................................................................................................................32
D. Computerized Accounting System.................................................................................................32
E. Daily Receipts/Cash Flow...........................................................................................................33
F. Daily Deposits...........................................................................................................................33
G. Departmental Sales Reports..........................................................................................................33
H. Balance Sheet............................................................................................................................33
I. Income Statement/Profit and Loss.................................................................................................33
J. Auditing Procedures Regarding Losses...........................................................................................33
K. References.................................................................................................................................34
XI. PROMOTION.............................................................................................................................35-39
A. Sales Promotion........................................................................................................................35
B. Visual Merchandising/Display......................................................................................................35
C. Advertising...............................................................................................................................35
D. Publicity..................................................................................................................................36
E. Personal Selling.........................................................................................................................36
F. Promotion Planning...................................................................................................................36
G. Special Events...........................................................................................................................37
H. Learning Activities.....................................................................................................................38
I. References.................................................................................................................................38
XII. PERSONAL SELLING/CUSTOMER SERVICE..............................................................................40-44
A. Selling Function........................................................................................................................40
B. Preapproach...............................................................................................................................40
C. Approach/Greeting......................................................................................................................40
D. Determine Needs/Wants...............................................................................................................41
E. Make the Presentation.................................................................................................................41
F. Handle Complaints/Objections.....................................................................................................42
G. Close the Sale...........................................................................................................................42
H. Suggest Additional Items............................................................................................................42
I. Reassurance and Follow-up..........................................................................................................43
J. Sales Related Activities...............................................................................................................43
K. Selling Policies.........................................................................................................................43
L. References.................................................................................................................................43
XIII. POLICIES ...............................................................................................................................45-52
A. Areas to Address........................................................................................................................45
B. Store Policy Manual...................................................................................................................46
C. Sample Policies.........................................................................................................................47
D. References.................................................................................................................................52
XIV.SECURITY ...............................................................................................................................53-55
A. General Guidelines.....................................................................................................................53
B. Security Equipment....................................................................................................................53
C. Supervision of Workers...............................................................................................................53
D. Loss Prevention ........................................................................................................................53
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I.
INTRODUCTION
School-based enterprises are effective educational tools in helping to prepare students for the transition from school to
work or college. For many students, they provide the first work experience; for others, they provide an opportunity to
build management, supervision and leadership skills. While some in the education community have only recently
discovered the value of school-based enterprises, marketing educators and DECA advisors have used them as a powerful
teaching tool for more than four decades.
The marketing education program was designed as a four-part program consisting of classroom instruction, co-op
training stations, DECA, and the school store lab. The school store lab is an important part of the curriculum; the main
function of the store being an educational lab where the concepts of marketing education curriculum are put into practice.
The school store can also be used as a tool in supporting the activities of the DECA chapter by providing a source of
funding. Beyond these two considerations, the store is a service to the student body and should project a positive image
to potential students.
A school store laboratory provides the following benefits to the students:
1.
An actual business atmosphere where they can apply the following marketing theory and principles learned in the
classroom:
• research
• merchandising/display
• forms of business operations
• financing a business
• cashiering
• store layout and design
• purchasing (cost analysis)
• advertising
• inventory control
• security
• salesmanship
• housekeeping
• marketing mix
2.
An opportunity to supplement, reinforce, and enhance the knowledge, skills and attitudes required for careers in
marketing.
3.
The development of businesslike procedures and attitudes in students.
4.
The development of leadership and management skills.
5.
Goods and services at reasonable prices for school faculty and the student body.
Considering the recent national emphasis on competency-based, individualized instruction in education, the ideal
learning situation is one which develops the student into an independent learner with the teacher acting as the “manager”
of learning rather than as a lecturer. The school store provides that ideal learning situation.
The unavoidable abstract nature of many of the concepts in marketing and distribution, the interests and aptitudes of
many of the students, and other related considerations all stress the need for creating as many teaching situations as
possible where the student can learn by doing. Many of the skills required for entry-level employment can only be
taught by doing.
Most administrators are hesitant when the subject of a school store is mentioned. Instead, the store should be referred to
as a “business laboratory” suggesting vast learning experiences in an entrepreneurial atmosphere—not just a profit
motivated school store operation.
By conducting marketing research through questionnaires, departmental contact and a great deal of public relations with
staff members, the school cafeteria and administrators, advisors can write formal proposals to satisfy the requirements of
the school boards and superintendents who normally approve or disapprove a retail laboratory. A sample proposal for
starting a school-based enterprise is included in Section II of this guide.
Basic Considerations for the Marketing Teacher/Coordinator
The school store is very visible on campus and therefore, can become very political with the cafeteria, athletics, clubs
and faculty members. It will be the responsibility of the coordinator to become an ally to all the different factions.
4
1.
The cafeteria will become a supporter of the school store if the coordinator works with them and includes them in
the product selection process. Depending on the item, the cafeteria could produce it and the store will sell it. Deli
sandwiches would be an example of this partnership.
2.
The store is a profit making school-based enterprise.
3.
The store is a learning laboratory therefore, should have the latest up-to-date equipment to train the students. If
money is an object, donations are always possible. Contacting your local grocery outlets or other major department
stores could help in acquiring the latest technology for student training.
High school SBEs vary according to school size and community. They range from elaborate walk-in stores with an
extensive inventory to a mobile cabinet on wheels. This guide will walk you through the business start-up format as we
develop an operation for a secondary school’s store lab.
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II.
SBE STARTUP (New Stores)
A. Create a Business Plan
As in the case with a new or expanded SBE, it is important to “test the waters” before you jump. An effective
business plan will give you a “sneak preview” of the potential success of your venture. The success or failure of
this business will be a direct reflection on you and your marketing program. Are you ready? Are you a risk taker?
A realistic business plan will provide you and your students with great insight as to the future success of your
school-based enterprise.
The business plan is a written document that clearly defines the goals of a business and outlines the methods for
achieving them. A business plan describes what a business does, how it will be done, who has to do it, where it
will be done, why it is being done and when it has to be done. Most importantly, it will tell you if your ideas
make sound fiscal sense (i.e., if it will be successful).
Dreams and ambitions are great and important, but results are what really count in the business world. Therefore, it
is important to establish realistic goals with a sound methodology for achieving them.
Listed below are some of the topics that should be included in your business plan:
1.
Business Description
q name
q goals and objectives
q owned and operated by marketing education/DECA program
q what is your market niche
q identify and analyze your competition
q who are your customers
q identify trends in your specific market
q does your SBE make good marketing sense
2.
Products and Services
q list your products and services you will offer
q what is your competition selling
q investigate other SBEs to help you to determine your product mix
q where will you buy your products
q conduct market research
3.
Sales and Marketing
• how will you price your products
• how will you promote your business (promotional mix)
4.
Operating Requirements
• address the size and location of your business
• identify and describe the equipment needed
• create a layout of the SBE
• discuss management and student employees
5.
Financial Management
q projected startup costs
q projected income statement
q projected cash flow statement
q projected balance sheet
Perhaps the most important number in this section is the bottom line. Will your SBE make a profit? Your
numbers should be realistic and credible. Obviously, the most difficult numbers to predict are your projected sales.
Your business plan should be complete, clear, neat, accurate and professional. It is a reflection of you and your
program. Planning is paramount to the success of any business. If you don’t know where you are going, how will
you get there?
Creating a business plan offers numerous and unlimited ventures for us in your classroom. One of the most
important foundations of our marketing education/DECA program is to provide meaningful and realistic educational
opportunities. Related activities are virtually endless for the creative teacher as each topic in the business plan offers
numerous assignments that will provide a “real life” experience for your students.
6
B. Learning Activities
Listed below are some activities and assignments that can be used to complement your assignment of creating a
business plan:
1.
Invite speakers to your classes. Some of these may include: entrepreneurs, bankers, small business
administration, venture capitalists, teachers/students from other marketing programs, sales representatives,
leasing agents, accountants, or lawyers.
2.
Analyze and evaluate other SBEs to determine the type of operation you and your students would like to
operate.
3.
Evaluate your competition to determine product mix and pricing that they offer. How will you compete with
these businesses?
4.
Create a list of possible vendors.
5.
Prepare a layout of your SBE.
6.
“Shop” for equipment and supplies needed for your SBE. Have these sales representatives present to your
classes.
7.
Use the Internet to research other business plans.
8.
Prepare projected income statements.
9.
Prepare projected balance sheets.
10. Prepare cash flow projections.
11. Offer students related vocabulary terms.
C. Sample Proposal for Starting a School-Based Enterprise
October 22, 2000
TO:
Mr. Ron Wheeler, Principal
Pepsico/Frito-Lay, Inc.
Chick-fil-A, Inc.
FROM: Debbi Popo
RE:
Proposal for a School-Based Enterprise Laboratory at Hamilton Township High School
Proposal:
The Career Technical Education Department at Hamilton Township High School proposes a marketing
education/DECA-operated “School Store” retail training laboratory at Hamilton Township High School.
Need:
There is a need to provide marketing education students/DECA members with hands-on experience in store
operations. The school store is a viable experience in preparing students with the skills and competencies needed to
be successful in the field of marketing. A retail training laboratory can provide opportunities beyond the traditional
classroom. Skills and knowledge through “hands-on” learning opportunities enhances learning beyond the
traditional/conventional classroom, and even beyond many students’ cooperative training stations. The retail
laboratory will provide us the opportunity to operate a real business, with real money, that also teaches us how to
deal with the day-to-day challenges of operating a successful business. We are also convinced of the benefits a
school store can provide to students, teachers, administrators, counselors and staff of Hamilton Township High
School by providing needed/wanted items right here at the school.
Without a doubt, marketing education/DECA students at Hamilton Township High School could be much better
trained and educated in what actually occurs in a real business through participation in a school store. In a school
store setting, students could be better trained to deal with and become involved in all areas associated with
marketing/retailing. Classroom instruction and cooperative training station opportunities for marketing education
students do not always allow the students to actually participate in the total operations of their businesses.
7
A school store laboratory that is co-curricular could offer marketing education students this exceptional learning
opportunity.
Purpose:
The purpose of the school store laboratory is to provide marketing education students with the opportunities to gain
realistic, marketing competencies in a unique “hands-on” learning environment. Through these learning
opportunities, students will be better prepared to enter the work force and to participate in meaningful job duties and
tasks.
Major Goals:
The major goals of establishing a school store retail training laboratory are as follows:
1.
Providing an actual business atmosphere in which to teach marketing principles.
Performance objectives: Students will apply performance indicators for financing, purchasing, selling, pricing,
promotion, product and service planning, risk management, distribution, marketing-information management,
and cashiering.
2.
Providing an opportunity to supplement and reinforce knowledge, skills and attitudes required for careers in
marketing-related (or other) occupations.
Performance objectives: Students will learn to better and more effectively use and employ effective
employer/employee communication, and appropriate customer relation responses in a selling situation through
their encounters with real customers.
3.
Developing businesslike procedures and attitudes.
Performance objectives: Students will apply individual critical thinking and individual group decision-making
skills to a realistic marketing situation as well as effectively communicate and treat others with respect and
decency.
4.
Encouraging and developing leadership and management skills.
Performance objectives: Students will receive hands-on management training through their terms as managers
in the store, and leadership skills through their participation in the youth organization (DECA) activities.
5.
Providing pre-employment training and providing quality merchandise at economical prices for the faculty and
student body.
Performance objectives: Students will experiment with real work experiences by providing other students,
teachers, administrators, counselors, and staff at Hamilton Township High School with a variety of
needed/wanted items both school-related and for personal use, all of which are providing the student with job
readiness skills.
D. Steps for Opening a School Store (Retail Training Laboratory)
1.
Write the proposal - This is the proposal document.
2.
Obtain school approval and funding through sponsorships (Pepsico/Frito-Lay, Inc. and Chick-fil-A,
Inc.): Benefits to the companies serving as sponsors of the school store include the following activities as
identified within the promotional mix elements below.
Advertising Ideas: An awning with the names Pepsico/Frito-Lay, Inc. and Chick-fil-A, Inc.; a moving
signboard in the store promoting Pepsico/Frito-Lay, Inc. and Chick-fil-A, Inc.; counters with the names on
them; and signs placed at the entrances to the school for the store.
Sales Promotion Ideas : Distribution by store personnel of Pepsico/Frito-Lay, Inc. and Chick-fil-A, Inc.
coupons and promotional items; window/store displays; product demonstrations; field trips to the business
sites; flyers; and posters.
Publicity Ideas: Favorable news articles/press releases about Pepsico/Frito-Lay, Inc. and Chick-fil-A, Inc.
products in the school newspaper along with store promotions; district recognition pieces; videotaped
announcements; local papers etc., serving as guest speakers and sharing with students how you got to where
you are within the company; and mention your charitable activities conducted by marketing education/DECA
students (i.e. bowling for the Muscular Dystrophy Association, canned food drives, holiday caroling for
Children’s Hospital, etc.).
Personal Selling ideas: One-on-one selling by students promoting Pepsico/Frito-Lay products and Chick-fil-A
restaurants; Hamilton Township High School students could supply you with employees for your businesses;
8
master inventory list distributed to staff and students with Pepsico/Frito-Lay, Inc. and Chick-fil-A, Inc. as the
sponsors.
3.
Establish an Advisory Committee – A Marketing Education Advisory Committee is currently in place at
Hamilton Township High School which was approved at the Monday, August 3, 2000, Board of Education
meeting. This advisory committee would assume an additional responsibility of serving in an advisory
capacity for the school store (retail learning laboratory). The advisory committee would be slightly expanded to
accommodate the other programs and their needs. The advisory committee would be able to provide the school
store (retail learning laboratory) with realistic suggestions as to store policies, procedures, equipment, and
facility needs and usage. In addition, invaluable input as to how to provide the best possible learning
experiences for students would be provided through their expertise and knowledge.
Below is a current listing of the marketing education advisory committee members.
Dr. Bernard C. Nye
COTC Professor/former Assistant Director of Marketing Education in Ohio
3408 Beal Road
Columbus, Ohio 43207
Todd Street
Hollywood Theaters, General Manager
1065 Mt. Vernon Road
Columbus, Ohio 43207
Donna Good
Equity Resources, Account Manager/former student
South Park Place
Columbus, Ohio 43207
Andy Wright
Bob Evans Restaurant
1001 Cherry Valley Road
Columbus, Ohio 43207
Stacy Scanion
Current Marketing Education Student
Hamilton Township High School
4999 Lockbourne Rd.
Columbus, Ohio 43207
Cristie Miskell
Hamilton Township High School, Career Technical Supervisor
4999 Lockbourne Rd.
Columbus, Ohio 43207
9
4.
Determine Site/Prepare Budget
Determine Site - Ideally, the school store (retail learning laboratory) should contain the following:
q The store setup should not be a “counter top” arrangement in which a few items, usually stored or
unappealing stock shelving, are merely dispensed and paid for.
q The store should be a real-life “walk-in” operation in which each item, by its presentation, competes with
other merchandise for the customer’s attention.
q The store should have provisions to accommodate easy changes in how and where each item is
merchandised, in order to test and evaluate the benefits or detriments of such changes.
q It is essential to use convertible store fixtures.
q A selling area of approximately 400 square feet minimum is recommended. Adequate reserve stock space
is also required.
q A room or area must be chosen in the school that is accessible and convenient to the majority of students.
After examining the Hamilton Township High School campus, it is believed that the ideal location would be
either 104 C or 104 E. Both are excellent sites for the school store, and since the area is large enough and
could be divided out, it would be in the same area as the marketing education classroom, therefore, not taking
additional classroom space away.
Budget Preparation - The school store (retail learning laboratory) would need the following pieces of
equipment to start operation:
• One cash register, NCR
• One cash counter
• Glass lockable showcases
• Interior and exterior display equipment (i.e. mannequins, tiered shelving)
• Refrigerator unit
• Refrigerator
• One full length mirror
• One metal file cabinet
• Eight storage lockable cabinets
• In addition, a wall with a door would need to be built, and a pull-down window is recommended
Estimated budget for equipment
$ 5,000.00
The school store (retail learning laboratory) would need the following room refurbishing to start operation:
• Carpeting
• Lighting
• Paneling
• Pegboard
• Painting
• Exterior sign
• Door
• Wall
• Pull-down window
Estimated budget for room refurbishing
$ 2,500.00
Initial inventory set-up costs
$ 2,500.00
Total funds needed for School Store startup
$10,000.00
5.
Establishing a Store Accounting System (bookkeeping procedures, records, files, licenses, appropriate
reports/forms, etc.) – Previously created and used documents could be tailored to Hamilton Township High
School.
6.
Establishing an Effective Security System.
7.
Selecting Merchandise – School supplies, clothing, and food items that will be sold in the school store.
8.
Identifying Vendors.
9.
Determining Buying, Delivery and Receiving Policies.
10. Developing Job Descriptions and Training Manuals – The management team concept will be employed in
the operations of the school store (retail learning laboratory). Each management team will be responsible for
the total operation of the store as well as management team members being responsible for his or her own
divisions.
10
The management team will consist of the following members: store manager, operations manager, merchandise
manager, sales promotion manager and the controller.
Store Manager
The store manager will be in charge of and responsible for the total operations of the school store (retail
learning laboratory). This person shall oversee the divisional managers and all store functions.
Operations Manager
This team shall be in charge of handling the following activities:
q Handling and controlling merchandise from receiving through the final sale
q Handling space utilization, including the layout of merchandise units, maximizing the flexibility necessary
to accommodate changes in the store
q Finding improved ways to present, display, and promote the products carried using the available store
fixtures
q Controlling pilferage by maintaining a strong security system
q Handling personnel schedules, training and performance evaluations
q Developing necessary systems/procedures for “paper” control of merchandise and record keeping
q Handling upkeep and maintenance of the store’s equipment and fixtures
Merchandise Manager
This team shall be in charge of handling the following activities:
q Determine what, how much and when to buy
q Locating and evaluating sources of supply
q Placing orders and handling pricing
q Maintaining stock control records of performance for analysis, evaluation and future planning
q Handling clearance of slow moving merchandise
q Reordering
q Planning space allocation, determining where certain items should be displayed, and how much space
should be devoted to individual categories, new items, etc.
Sales Promotion Manager
This team shall be in charge of handling the following activities:
• Planning promotional events
• Arranging for the use of the media (school announcements, school paper, local paper, etc.) for publicity
• Preparing promotional materials
• Handling window/store displays
• Increasing sales of various items via more effective in-store presentations
• Handling interior displays
Controller
This team shall be in charge of handling the following activities:
q Handling cash
q Managing financial record keeping and auditing
q Handling financial planning (both short and long term)
q Taking inventory, pricing, and evaluating age, turnover and profitability of items
q Evaluating cash flow and preserving credit and solvency
q Preparing financial reports
The above divisions will be supplied with appropriate student personnel to handle all of the above functions.
The number of people within the division will depend upon class sizes and amount of workload within each
division.
11. Theme and Name Identification – “Cat Corner” or something with Wildcat in the name appears appropriate.
We are hoping to use the logos of Pepsico/Frito-Lay, Inc. and Chick-fil-A, Inc. as appropriate in the
identification of the store.
12. Personnel Training – Instructors would provide basic store operation training to students, and managers will
train upcoming managers in their job duties, since it is intended that managers will rotate.
13. Demonstration and Operation of the School Store (Retail Learning Laboratory) – It is proposed that the
school store be opened during the 2000-2001 school year, with times of operation being before school, activity
period, and the lunch blocks.
11
14. Opening Day
As opening day approaches, student and teacher(s) will be both excited and nervous. Be sure that every detail
of the operating plan is covered with everyone—one more time. We know it is redundant but this will help
calm the butterflies!
Also, do not forget to make this a community and school affair. Capitalize on publicity by contacting the local
media. Be sure to:
q Place articles in the school newspaper.
q Call radio stations, TV stations, and newspapers for coverage.
q Make announcements over the school PA system.
q Send information home to parents via students and school mailings.
q Put flyers in teachers/administrators mailboxes.
All students should have been well trained by opening day. The first day of business will make a lasting
impression. To insure that your customer has a positive experience:
q Students should be informed of all aspects of the operation.
q Cashiers today should be those that have cashiers experience in industry.
q Only students scheduled for work should be on the floor.
q Over staff the positions of cashier helper-this will be needed.
q Check all equipment prior to opening-fix any bugs in the system.
q Have a dry run with “real customers” prior to opening day.
q Invite teachers for a sneak preview prior to opening day.
If you are able to answer positively to this checklist for school store, you will be ready for opening day.
E. References
Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (1997). Marketing Essentials (2nd ed.) [pp. 512-525, 527]. New
York: Glencoe/McGraw-Hill.
12
III.
JOB INTERVIEW
A. Job Descriptions
Efficient and effective employees are a major reason for the success of any business. This holds true for the
operation of any SBE and is also a direct reflection on you and your program. You must decide who will interview
students for employment opportunities within your business entity along with a job description for each position.
Because your SBE is unique, the student employment positions will vary from school to school. However, there
are probably many responsibilities and jobs that will be common to each SBE. Listed below are job descriptions
that may be used, if appropriate, for your business operation:
Manager(s) – responsible for the overall management of the store; scheduling and training of employees;
general supervision of the management team and all employees; must know how and when to delegate
authority.
Assistant Manager(s) – works closely with the manager(s) to complement their job description (see manager(s)
job description); completes specific tasks as assigned; works with the management team to resolve conflicts and
problems; ensures that store policies are followed.
Buyer(s) – responsible for the purchase of products for resale and supplies needed for daily operation; educates
staff and employees on product and service information that is needed to sell products; responsible for
inventory records and reordering; creates policies and standards for the receiving of shipments; works with the
management to address open-to-buy, payment of invoices, and establishing credit.
Merchandising Manager – responsible for proper merchandising of inventory; works with the advertising and
display manager to coordinate promotions; helps to train and communicate to employees.
Advertising and Display Manager – responsible for all promotions, including advertisements and displays;
works with the buyer to obtain P.O.S. and P.O.P. materials from suppliers; proofs all advertisements and
promotions; meets all deadlines for promotions.
Accountant/Bookkeeper – responsible for all financial records, including, but not limited to balance sheets,
income statements, inventory control, and cash register records.
Employees – the basic ingredient that is the reason for the success of the business, responsible for customer
service, selling, stocking, cleaning.
Your SBE may have fewer or additional positions depending on the scope and nature of your business.
B. Application/Interview
The application procedure for each of these positions will vary from school to school. Some of you may elect to
use the following guidelines:
•
•
•
•
•
Posting of each position with respective deadlines
Requiring a cover letter and résumé to be considered for employment
Completing an application for employment
Conducting a job interview
Job training and expectations
A business organizational chart will help to define employee/management relationships within your SBE. This
chart should also address the relationship with the school board, central administration, and school administration.
As the marketing teacher, you will be the individual that is responsible for the overall operation of this business
entity.
13
C. Learning Activities
Listed below are some activities that may be used to complement your instructional units of study:
• Review the preparation of résumés and cover letters.
• Review the factors that help to make-up an outstanding employee.
• Review how to complete an application form.
• Review how to prepare for an interview.
Students should feel comfortable in responding to the following interview questions:
• Why do you feel qualified for (specific position)?
• What are your strengths and weaknesses?
• What activities are you involved in this year?
• Why would you be the best applicant for this position?
• What work experience have you had that would help you with this position?
• What are your long-range plans?
• Would you feel comfortable telling other students to complete specific tasks?
• Why do you want to be the store (specific position)?
• What does success mean to you?
• How many days have you been absent this year?
It is important to maintain the goodwill of the applicants that were not selected for the position for which they
applied. Make every attempt to keep them motivated and involved in other aspects of the SBE and the
marketing/DECA program.
D. References
Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (1997). Marketing Essentials (2nd ed.) [pp. 518, 580, 581, 582-583,
587-589]. New York: Glencoe/McGraw-Hill.
14
IV.
MARKET RESEARCH
A. Determine What to Buy
A successful school-based enterprise needs to conduct research relating to your target market, competition,
individual customers, and most importantly, what products and services you will be selling and offering.
Marketing research will take much of the guesswork away from both you and your students. Even though this
research is not always 100% accurate (New Coke), it will offer pertinent information for making sound business
decisions. It will help you to minimize losses as you introduce new products and services.
Conducting market research provides you with numerous opportunities to relate your curriculum to an actual
business – your SBE! In most cases, you do not have to reinvent the wheel. You have the luxury of networking
with other SBEs in your immediate area as well as around the country. Let’s practice what we preach!
As a general rule, your marketing research will not be all inclusive of every area of research. You will obviously
conduct your study by researching the most vital and important areas of your business operation. Listed below are
some of the typical and common areas where marketing research may be conducted:
•
•
•
•
•
•
•
advertising research
customer research
competition research
operations research
business responsibility research
product research
sales and market research
Advertising Research – What media will best reach your customers? Is your target market properly receiving your
message? Do your students read and respond to advertisements in your school newspaper?
Customer Research – Who are your customers? Will you attempt to attract your students, parents, staff, and
community members?
Competition Research – Who are your competitors? What are they offering and at what price? Can you list some
of the successes and failures they have experienced?
Operations Research – How can you make your business more efficient and effective? Are your policies,
regulations, and procedures addressing your needs? Do your students and customers support them? Are you being
consistent?
Business Responsibility Research – Are you being a good citizen in the community? Are there any
environmental or social concerns that you need to address?
Product Research – What products will you offer and at what price? Does your product line and product mix
satisfy the needs and wants of your customers? Is your space limited? Are you utilizing your square footage
efficiently and productively? Do you need to eliminate some of your current inventory offerings?
Sales and Market Research – Are you doing a good job of merchandising your products?
Is suggestive selling being used? Are you utilizing P.O.P. and P.O.S. materials and concepts?
Market research will generally fall into two major categories — primary and secondary.
Primary data are facts and research that is obtained for the first time and used specifically for your study.
Secondary data are facts that have already been collected and used by another business or research group (i.e.,
the results of research previously conducted).
15
There are numerous methods and techniques to conduct marketing research. Because of monetary and time
restraints, you will have to decide what will work best for your SBE. Listed below are some of the methods you
may choose to use:
•
•
•
•
•
focus groups
test marketing
surveys
observation
trial and error
Focus Groups – utilizes a small group to obtain information relating to your specific study or research problem by
informally discussing your topic or concern.
Test Marketing – introducing a new product after establishing a market for that product.
Surveys – use questionnaires to survey your target market directly.
Observation – observes and records the actions of your customers.
Trial and Error – trusting your instincts to offer a new product without any formal research.
As alluded too earlier, market research is not 100% accurate. Experience and time will be the true judge of your
efforts. However, conducting market research will probably save you much time, money, and aggravation.
B. Budget
Only buy the minimum amounts to test out products in your store. If the product turns out successful you can
better focus on your customers wants. Your store may be a clothing store, gift shop, balloon store, food
concession, or some other type of enterprise. Try not to go overboard.
C. Target Market
By combining the above data, you will be able to chart your customers profile. Be sure to know the demographics
and psychographics of your customers.
D. Learning Activities
Listed below are some activities, assignments, and research methods that can be used to complement your
curriculum, program, and SBE:
1.
2.
3.
4.
5.
Observe other successful SBEs in your area that are similar to your business operation.
Invite speakers to your classrooms to discuss the following topics:
a. Conducting market research.
b. Personal success (or failure) stories.
c. Sales representatives to sell products for your SBE.
Conduct market research for your SBE.
Utilize the Internet for research and to ‘chat’ with other DECA chapters.
Experiment with different merchandising methods—what works and what doesn’t.
E. References
Burrow, J. & Eggland, S. (1995). Marketing Foundations and Functions [pp. 243-245, 256-261, 275-278, 350351, 638-643]. Cincinnati: South-Western Publishing Co.
Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (1997). Marketing Essentials (2nd ed.) [pp. 423-429]. New York:
Glencoe/McGraw-Hill.
Marketing Education Resource Management. (1996). Marketing Functions [Marketing and Business LAP 2].
Columbus, Ohio: Author.
Marketing Education Resource Management. (1996). Marketing Functions: Instructor Section [Marketing and
Business LAP 2]. Columbus, Ohio: Author.
Marketing Education Resource Management. (1997). Market Identification [Marketing and Business LAP 5].
Columbus, Ohio: Author.
Marketing Education Resource Management. (1997). Market Identification: Instructor Section [Marketing and
Business LAP 5]. Columbus, Ohio: Author.
16
Marketing Education Resource Center. (1999). Nature of Budgets [Management LAP 59]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1999). Nature of Budgets: Instructor Section [Management LAP 59].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1996). Nature of Marketing Research [Marketing-Information LAP 5].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1996). Nature of Marketing Research: Instructor Section [MarketingInformation LAP 5]. Columbus, Ohio: Author.
17
V.
BUYING AND PRICING
A. Research Vendors
After you have developed your business plan and established your target market, you are ready to locate your
vendors.
This may be achieved by:
I. Using the Internet
A. DECA’s Web site
B. Individual vendor’s web sites
II. Attending
A. Regional trade shows
B. National trade shows
C. General merchandise shows where all types of product lines are found
III. Visiting
A. Gift-ware buildings in local major cities or in New York where national branded lines are found
B. Exhibitors at National DECA conferences (CDC) who are approved by National DECA
C. Local vendors and sales representatives in your particular areas
When it comes time to attend a trade show, it will be necessary to provide a business card and a credit reference
sheet to gain entry. It is suggested to try to pre-register your student buyers and you the day of the show; this will
make it much easier.
B. Determine Cost Code/Mark-Ups
Prices are usually determined by what “the market will bear.” Some school stores work on a full keystone. This is
defined as a full 100% mark-up. For example, if a product wholesale cost is $1.00, the retail is $2.00. Most
school stores do not have the overhead as a regular retail operation. Therefore, you may mark-up your merchandise
using a lower percentage. In some cases, you will do a higher volume of business because you have a “captive
audience”. You may retail that same item which costs you $1.00 at $1.50 and still make a profit. On the
downside, one must keep in mind that all merchandise might not be sold. You must allow enough profit to cover
unsold or perishable merchandise.
If you place a cost code on your ticketed items, this will allow you to know the wholesale price (in code) on your
ticket without constantly leaving the floor to look up the wholesale price of that item on the invoice. The rule of
thumb for a cost code is a ten-letter word with no duplicate letters. You may use the letter “X” if you must repeat a
letter. For example, the word REPUBLICAN and X may be used as a cost code word. Each letter represents a
number and the “X” is used when a number is repeated:
R=1 E=2 P=3 U=4 B=5 L=-6 I=7 C=8 A=9 N=-0
Using this cost code, if an item was $1.00 wholesale, then the cost code would be RNX. Another example of a
cost code word is CHILDREN, and using X again for repeats.
C. Services
Some companies will offer promotions or fixtures with merchandise to offset the cost of the fixture. Proper fixtures
make a more salable appearance for the merchandise. As for promotions, some companies will offer better prices if
you are able to buy larger quantities. Also, some vendors offer items on special or close-outs. If you are able to
take advantage of these special deals, it provides another avenue of making additional profits. Try to purchase
merchandise that will make a statement in your store. Merchandise sells best when it is creatively displayed and
you show some depth with that particular line of merchandise. For example, imagine you are buying plush bears.
The bears are offered in three different sizes, large, medium and small. You should order one large bear, two
medium and three small bears in the same style. Your sales representative should offer this suggestion as well as
many others concerning merchandise selection.
If you are buying merchandise that is easily broken, you should check with your supplier and make sure that they
accept returns. If you receive merchandise that is broken, you should call, or e-mail the vendor and report the
mishap. From there they will inform you of what you have to do. Usually, they will issue a “call tag” or a Return
Authorization Number. Some vendors will just accept the report of the damaged item and will advise you to
discard of it, and then they will issue you a credit memo to that invoice.
Try to gather as much information as possible regarding the vendors’ policy on damaged merchandise. Your goal is
to ensure that the vendors will credit your account for any damages occurred during shipping. You certainly do not
want to pay for merchandise that you will not be able to sell.
18
After calculating your “open to buy” per season or buying period, ask the sales representative to bring the
merchandise samples to your school so the student buyers may view the merchandise in person before you make the
final decision and purchase.
D. Opening Accounts/Establishing Credit
A good way to initiate establishing your credit for the school store is to deal with local vendors. As mentioned
earlier, when it comes time to attend a trade show, you will need to supply a business card, trade credit reference
sheet, and possibly an account number to gain entry to the show. The trade credit reference sheet has the name and
address of the school store, the name, address, and account number of the bank where you make your deposits.
Also included are a list of vendors (usually three) that you have been doing business with. The list should include
their name, address, phone number, and contact person. The new vendors will call the three other vendors that you
listed to gain information on your credit. However, some vendors will insist on COD terms for your first order.
This will have to be your decision or how your school handles such purchases.
Once your credit has been established and your account has been set up, a sales representative will call and arrange
an appointment to visit you and your student buyers. It is good to initiate a relationship with new vendors by
purchasing their minimum opening order. Some vendors will have $100.00 or $250.00 opening terms. It is
suggested to stay within those limits so you do not over extend yourself and jeopardize a good business
relationship.
E. Terms
Most companies wish to be paid within thirty days (N30) of ordering. However, food purveyors may have different
terms. Usually it is within ten days (N10). Seasonal gift merchandise usually is purchased as soon as six months
in advance. When this occurs, some vendors offer dating. For example, Christmas merchandise is purchased in
April, shipped in August, and payable in December. It is important to pay your bills on time to keep good credit.
The importance of a good working relationship with your business administrator cannot be stressed enough.
Always inform your vendors of the school board’s policies regarding methods of payment and timetables.
F. Delivery
Delivery of merchandise is from UPS, RPS, or a local freight carrier. Freight charges should be included in your
invoice. You do not want to be in a position of paying for the freight charges upon delivery. Discuss this with
you sales representative. On seasonal merchandise, set up a cancellation date so you are not responsible for
merchandise delivered after the season has ended.
Any and all persons who would be responsible for receiving merchandise should be apprised of the method of
checking in and accounting new merchandise.
A log system complete with date, time, vendor, and signature of the person receiving packages is essential for
accurate accounting.
G. References
Burrow, J. & Eggland, S. (1995). Marketing Foundations and Functions [pp. 417-419, 504-505]. Cincinnati:
South-Western Publishing Co.
Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (1997). Marketing Essentials (2nd ed.) [pp. 209, 347, 380-381, 392405, 409-410]. New York: Glencoe/McGraw-Hill.
Marketing Education Resource Center. (1997). Calculating Break-even [Pricing LAP 4]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1997). Calculating Break-even: Instructor Section [Pricing LAP 4].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1992). Factors Affecting Selling Price [Pricing LAP 3]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1996). Factors Affecting Selling Price: Instructor Section [Pricing LAP 3].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1993). Merchandising-related discounts [Purchasing LAP 3]. Columbus,
OH: Author.
Marketing Education Resource Center. (1993). Merchandising-Related Discounts: Instructor Section [Purchasing
LAP 3]. Columbus, Ohio: Author.
19
Marketing Education Resource Center. (1991). Pricing [Pricing LAP 2]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1994). Pricing: Instructor Section [Pricing LAP 2]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1997). Psychological Pricing [Pricing LAP 1]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1996). Psychological Pricing: Instructor Section [Pricing LAP 1].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1989). Purchasing [Purchasing LAP 1]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1989). Purchasing: Instructor Section [Purchasing LAP 1]. Columbus,
Ohio: Author.
20
VI. RECEIVING
A. Receiving Process
When students are assigned to check in new merchandise, they should not be permitted to check in the merchandise
using packaging slips or invoices. A blind check procedure should be utilized which requires students to write
down the quantities and descriptions of the items received. After the blind check, students bring the results to the
store manager for the final comparison with a packaging slip and/or invoice. If the student does not have prior
knowledge of the quantities and description, the opportunity to remove merchandise from the shipment has been
eliminated. Another technique is to remove items before the students check in the merchandise and see if they
notice the difference. A lot of merchandise has been damaged because students did not realize how deep a razor
knife cuts. In the beginning of the year, new students should be shown the proper method to open boxes. Other
effective measures include establishing check-in procedures that are to be followed by all students and job rotation.
This information must be accurate as your billing amount depends on it. There are many methods that may be used
to check merchandise, such as the blind check, direct check, dummy invoice check, or port check. Select the one
that is most comfortable and easily understood by you and your students. Keeping it easy assures accuracy which
later helps in prompt payment of invoices. Also, check that merchandise arrives in salable condition. If it is
damaged or soiled, notify the company at once for adjustment or replacement.
B. Stocking and Ticketing
After you have checked in the new merchandise, the next phase is to ticket the merchandise and either bring the
merchandise to the selling floor or put it into “back stock” until it is ready to be brought to the sales floor.
Many different methods may be used for various kinds of merchandise. Universal price codes (UPCs) are widely
used in business today for tracking merchandise. The UPCs are parallel bars and a row of printed numbers that once
scanned describes the merchandise and it’s price.
If your system is not as sophisticated, one may use an adhesive ticket, pin ticket, or plastic string ticket. Have your
student fill out the ticket using its sku (stock) number, size and price. Your cost code may also be implemented on
the ticket. Having all merchandise priced and ticketed is essential for smooth daily operations. Implementing a
system of ticketing your merchandise aids in your daily tracking of merchandise and inventory. One needs to know
what merchandise is selling and what items are slow movers.
C. Handling Discrepancies
When receiving merchandise into your school store, it is critical to check off merchandise against the packing slip
located either outside or inside the package. A receiving form may also be used to cross-reference the incoming
merchandise against the vendor's invoice.
D. Handling Returns/Damaged Products
Check that merchandise arrives in salable condition. If it is damaged or soiled, notify the company at once for
adjustment or replacement. If you are buying merchandise that is easily broken, you should check with your
supplier and make sure that they accept returns. If you receive merchandise that is broken, you should call, or email
the vendor and report the mishap. From there they will inform you of what you have to do. Usually, they will
issue a “call tag” or a Return Authorization Number. Some vendors will just accept the report of the damaged item
and will advise you to discard of it, and then they will issue you a credit memo to that invoice.
Try to gather as much information as possible regarding the vendors’ policy on damaged merchandise. Your goal is
to ensure that the vendors will credit your account for any damages occurred during shipping. You certainly do not
want to pay for merchandise that you will not be able to sell.
E. References
Burrow, J. & Eggland, S. (1995). Marketing Foundations and Functions [pp.424]. Cincinnati: South-Western
Publishing Co.
Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (1997). Marketing Essentials (2nd ed.) [pp. 353-355]. New York:
Glencoe/McGraw-Hill.
Marketing Education Resource Center. (1993). Handling Returns [Mathematics LAP 45]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1991). Handling Returns: Instructor Section [Mathematics LAP 45].
Columbus, Ohio: Author.
21
Marketing Education Resource Center. (1993). Receiving Process [Distribution LAP 5]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1993). Receiving Process: Instructor Section [Distribution LAP 5].
Columbus, Ohio: Author.
22
VII. INVENTORY CONTROL
A. Perpetual Inventory
Keeping a reliable inventory system is an important component to the success of your School-Based Enterprise.
Inventory records are used to provide data for numerous business activities. Functions such as buying, accounting,
pricing, selling, merchandising and promotion all rely on accurate and up-to-date inventory data to make the
business run effectively. One of the keys of an effective inventory system is a goal of having just the right amount
of merchandise on hand to satisfy consumer demand for that item. For most business operations, both a unit
inventory control system, as well as a dollar inventory control system will be very helpful in obtaining that goal.
In a unit control system, the business is able to tell how many of a particular item has sold, what should be in
stock, and what and how many are on order. A unit control system with stock-keeping units (SKUs) can be set up
to keep track of individual units with as much detail as you require. Data such as styles, colors, and sizes in
clothing, brands or flavoring in soft drinks, or topics and seasons in gift cards and balloons can be easily tracked for
individual or department sales, stock turnover, returns, as well as, low or out-of-stock items.
In a dollar control system, the value of the inventory can be computed, the dollar value allotted for future purchases
of merchandise (Open to Buy) can be determined, as well as the potential for profit from your sales. The dollar
value is a requirement for preparing financial statements, such as the income statement and balance sheet. To get a
true picture of the value of a business or its profitability, an accurate inventory evaluation is critical. Dollar control
values can also be used to evaluate worker sales productivity, as well as, sales activity for given time periods.
B. Physical Inventory
A perpetual system using a Point-of-Sale (POS) system of inventory control would be most useful for the SBE,
just as it is commonplace in the retail business world today. With a perpetual system, inventory records are
updated whenever a change in inventory takes place. The key to an effective POS system is an individual computer,
or multiple computer terminals networked to provide continuous feedback on the merchandise available for sale.
The options on software to run the system will vary depending on the breadth and depth of your merchandise
assortment and the amount and detail of the inventory reports you wish to generate. Other key components of a
POS system would include the following; a bar code scanner with a printer or device capable of producing bar
codes, a printer to record detailed customer sales receipts along with printed reports, a dedicated cash drawer, and
the option to network other sales terminals to the system.
The physical inventory is another essential component for a well run SBE. Depending on the type of merchandise
sold in your business, the timing of a physical count of merchandise may vary from daily to weekly or monthly, to
even once a semester or year. Items of high dollar value such as jewelry, or high demand items such as CDs might
need to be counted daily or weekly. You may conduct a limited physical inventory on merchandise carried by a
vendor who will be calling on the SBE in the near future. The physical count is the only accurate way to find out
inventory quantity and value on a given day or time. There are a number of factors that might create discrepancies
between the physical and perpetual inventory figures. Merchandise may be lost, stolen, damaged, or improperly
recorded when received or sold. The physical count should get the inventory records accurately matched.
C. Security/Shrinkage
When differences between perpetual and physical inventory amounts occur, the concept of inventory shrinkage needs
to be addressed. Inventory shrinkage occurs when the physical count of inventory is lower than what the SBE's
inventory records show. When discrepancies occur, a number of problem areas need to be looked into, some
procedural in nature, some dealing with security problems.
23
Shoplifting, or theft by customers can be a major shrinkage problem. If left unaddressed, losses can create a great
financial burden to overcome. Because the typical shopper in a school-based enterprise is a teenager, shoplifting
may occur as a dare under peer pressure, or just for kicks. Also the physical layout of most SBEs along with
crowded conditions creates a situation where opportunities for shoplifting may be great.
An even bigger problem for many businesses, including SBEs is theft by employees. Theft of money and time by
workers are addressed in other sections of this Guide, theft of merchandise will be discussed here. An
employee/worker has the opportunity to be dishonest in any number of activities that create shrinkage. Taking
merchandise from the store or passing out items to friends may occur. Eating food or drink items without paying
for them is always a problem in food service operations. Hiding items in the trash or allowing other workers or
friends’ access to merchandise in unsupervised areas such as stockrooms, display areas, or receiving areas may create
opportunity for theft. In addition, marking inventory with a lower price than planned upon receiving stock, giving
unauthorized markdowns to others, or switching tags before they or others purchase items creates shrinkage.
Once your recognize the opportunities for theft that exist, it is your responsibility to institute preventive measures
to discourage theft and shrinkage. The following guidelines are offered as ways to reduce shoplifting.
• Train workers to be observant of customers and be aware of procedures to follow if they believe shoplifting
has occurred. Every member of the SBE staff should have security on their minds at all times.
• Assign an employee to work as a security person at the entrance/exit to the business. Limit the number of
customers in the store at a given time.
• Have customers check all bags and large coats at a security area near the entrance.
• Post signs to inform customers they may be under surveillance.
• Merchandise should be arranged and displayed to minimize opportunity for theft. Place valuable items
such as jewelry, CDs, or gift items in locked display cases.
• Install a closed-circuit television system with multiple camera locations. Have the availability to record
activities with a VCR. A time-date generator VCR is best to use for potential legal action.
• If fitting rooms are used, assign a worker to monitor its use.
To prevent employee theft some additional security measures should be addressed. They include the following:
• Have all workers (and parents) read and sign a contract that spells out their role and responsibilities in
handling merchandise, money, and equipment. Stress honesty and ethics with the entire staff. Make sure
your code of conduct is in agreement with the school's code.
• The instructor or manager should approve all employee purchases. Special forms may be used for
employee purchases, including candy and food. Employees should never ring up their own sales.
• Limit access to certain merchandise areas and do not allow individuals in selling areas by themselves. Pay
close attention to workers who arrive early and/or stay late.
• Employees should not be allowed to bring coats, purses, or book bags into the store.
Other areas of a procedural nature that workers should follow to reduce shrinkage might include the following:
• Report damage to goods immediately so inventory may be adjusted for the loss.
• Double check all items received to ensure the SKU and retail price figures are correct.
• Have employees record all sales, returns, and exchange transactions correctly.
• When taking inventory, use a team system or double check for count accuracy.
Depending on the structure of the class or classes, it may be possible to carry out both an ongoing physical
inventory system and a perpetual inventory. If such a procedure is possible, you will notice the immediate ability
to identify shortages in a short period of time. This will also help the instructor to identify the areas of the
operations where attention is most needed.
This procedure can be accomplished by:
1. Assigning students to a specific section of the school store.
2. Generating a current inventory list for the store.
3. Assigning students to count the merchandise on inventory shelves.
4. Comparing lists to identify any shortages.
This will allow the management staff to identify those areas that do exist. If the shortage problem is an internal
one, a different individual should physically inventory selected items and compare the two findings with the
perpetual (paper) inventory.
D. Dealing with Shortages
1. Take physical inventory monthly. Match it up with your perpetual inventory system if you have a computerized
cash register system. The auditors expect you to do a physical inventory at least once a month even if you have
a perpetual system.
2. Shortages need to be dealt with immediately even if it means shutting down the store to figure out why.
24
3.
4.
5.
6.
7.
If shortages persist you might want to buy a surveillance camera.
Check out the possibility of students ringing in short. (This is another reason to do physical inventory.)
Program your cash registers to ring in for amount of sale.
Only assign one person as a cashier during a shift and they should balance out the drawer at the end of their
shift.
If the school store is consistently loosing money, someone is probably stealing.
E. Learning Activity
As a worker in a school-based enterprise, protecting the value of the assets in the business from shrinkage is a major
responsibility. You are to identify areas of your business that might have potential for inventory shrinkage. You are
also asked to provide suggestions to improve the inventory control procedures or security procedures to minimize
shrinkage.
F. References
Burrow, J. & Eggland, S. (1995). Marketing Foundations and Functions [pp. 423, 473, 653]. Cincinnati: SouthWestern Publishing Co.
Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (1997). Marketing Essentials (2nd ed.) [pp. 358-361]. New York:
Glencoe/McGraw-Hill.
Marketing Education Resource Center. (1992). Inventory Control Systems [Distribution LAP 2]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1992). Inventory Control Systems: Instructor Section [Distribution LAP
2]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1999). Inventory Shrinkage [Distribution LAP 4]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1999). Inventory Shrinkage: Instructor Section [Distribution LAP 4].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1992). Unit Inventory Control Systems [Distribution LAP 3]. Columbus,
Ohio: Author.
Marketing Education Resource Center. (1992). Unit Inventory Control Systems: Instructor Section [Distribution
LAP 3]. Columbus, Ohio: Author.
25
VIII. SERVICES
A. Credit
Credit can be issued to students enrolled only in the marketing education program. This could be initiated by a low
credit line of $50 payable every two weeks. If a student pays within the terms outlined in a credit agreement, the
credit line may be raised. This teaches students about credit responsibility. It is advisable to issue credit only to
your students because you have control as far as financial obligations. Of course, it is important to say that this
credit can only be established with the consent of a parent or guardian. The faculty can also establish credit by
signing a credit agreement with similar credit terms.
B. Gift Wrap
Gift-wrap is an excellent service to provide for your customers. It is essential to make everyone aware of this
unique service that is offered for purchases made in the school store. High quality paper and floral waterproof
ribbon should be used. The ribbon is used to make large POM POM bows, which are to be attached to the
purchased gifts. Presentation is everything. A beautiful package implies thought, good taste and a personal touch.
The cost of wrapping is conditional on the size of the gift. This provides additional revenue for the school store.
Other wrapping can include cellophane wrap for Easter baskets, fruit baskets, etc.
C. Delivery
Make sure you have reliable students delivering birthday gifts, valentines, balloons, valentine roses,
Mother’s/Father’s Day gifts, and graduation balloons. It is a good idea to include elementary and middle school
children for the promotions. Accurate information such as full name, date, and time to be delivered is essential for
good service. Good service means good publicity for your store. This added dimension could make the difference
in whether or not you have repeat business.
E. Parties/Catering
Learning to inflate Mylar and latex balloons is very lucrative for the business in your school store. Decorating for
in-school functions such as dances, recognition dinners, proms, fashion shows, student/class events, and individual
parties is another profitable service that can be offered by the school store. Balloons, centerpieces, and spiral arches
are in demand for these functions. The elementary and middle schools can also use these decorations for their
dances and graduations. Students enjoy providing this service because it is a team effort. Flowers Inc. in Bogart,
Georgia, is an excellent resource for all your decorative needs. This company is also very helpful and gives fantastic
services and suggestions. They are accustomed to dealing with schools and this may be a good opportunity to
establish credit. If you have a food service program, you can incorporate their services for your next party.
E. Special Orders
School teams and clubs are interested in purchasing shirts and jackets with their club and/or team name or logo
printed on them. You can become a vendor for these special projects making it easier for the coach or bandleader or
club advisor by providing this service. Your students can market the entire operation from sizing to ordering to
distribution. Other special orders may include school jackets, tuxedos for proms and class rings! The possibilities
are endless.
F. Gift Certificates
Professional staff like the idea of a school store gift certificate to give to the student who has done a good job in the
classroom. When a faculty member has a birthday, baby, marriage, etc., they can give a school store gift certificate,
if merchandise is sold applicable to these events.
G. Coupons
Use coupons for promotional events for everyone at school to generate business, and clean out dated merchandise.
Put percentage discounts in a jar and let customers pick one out to receive additional money off their purchase
(10%, 20%, 40%, etc.). Balloons can also be used in the same way. The percentage could be placed in the
balloons on small pieces of paper and then the balloons are popped to see what percentage is given. Printed
coupons may be used in the school newspaper or in staff and faculty mailboxes for incentives to shop at the school
store.
H. Other Services
To bring faculty into the school store, you should get together the birthdays of each faculty member. A little note
is sent on their special day and offers a small gift, such as a cup of coffee, a pretzel or a balloon. Surprisingly, they
will notice the merchandise you have for sale and be your next customer.
Start a coffee club. Those frequent flyers at your coffeepot will enjoy a free cup of coffee after purchasing 12 cups.
Just one more way to bring your faculty into the store on a regular basis.
26
To get community involvement, have flyers sent home with students and have the school store displayed with all of
the merchandise, gym suits, school jackets, sweatshirts with school name, etc. Most adults have no idea what
wonderful merchandise is sold in their school stores. This activity can be done for Back to School Night,
Freshman Orientation, and an evening prior to holidays. You can use the talents of the other departments of your
school, such as the band, choir, food services, and the drama department.
This service does not have to include only high school members. Elementary and middle school students can also
benefit from this service. You may or may not choose to include pricing in your flyer. Try an Open House for an
evening to acquaint the community with the merchandise of the school store. Your store and program deserve the
exposure!
I.
References
Burrow, J. & Eggland, S. (1995). Marketing Foundations and Functions [pp. 390-395]. Cincinnati: South-Western
Publishing Co.
Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (1997). Marketing Essentials (2nd ed.) [pp. 519]. New York:
Glencoe/McGraw-Hill.
Marketing Education Resource Center. (1988). Customer Services [Product Planning LAP 4]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1988). Customer Services: Instructor Section [Product Planning LAP 4].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1991). Product/Service Planning [Product Planning LAP 5]. Columbus,
Ohio: Author.
Marketing Education Resource Center. (1991). Product/Service Planning: Instructor Section [Product Planning
LAP 5]. Columbus, Ohio: Author.
27
IX. CASH HANDLING
A. Cash Register
Whether using cigar boxes or a sophisticated P.O.S. system, a cash register is essential for keeping sales records.
We strongly suggest using a DEPARTMENTAL register to keep records of sales in each department of your store,
such as imprinted sportswear, stationary items, food, balloons, gifts, cards, etc.
At the end of each shift or class period, students should X out (meaning what they sold in that period of time). At
the end of the store day, they should Z out the register, which means totaling sales of the day per department. Your
register should be capable of performing these functions to enable you to keep accurate records of your daily
receipts. As a regular procedure, the store operator should check the number of times during a cashier’s shift that
the cash drawer was open for no sales. If the cash drawer has been opened more than twice, the cashier should be
questioned.
There is no way to recommend one best cash register. The store operator should shop equipment suppliers and
check with other marketing teachers. Before making the final decision, the operator should examine the computer
software to determine what kind of reports it generates. For example, the following reports are necessary on a daily
basis: total sales by department; register totals, voids and no sales; and daily sales by hour report.
An example of an inexpensive register is the Royal, which costs about $200.00. More sophisticated registers with
PC’s and scanners include CASIO and NCR (prices range from $250.00 to $8,000.00). The prices include various
types of software.
B. Making Change
Today, students are so used to calculators in doing their math, that making change becomes a major task. You can
program your cash register to specify the exact change or take extra time and teach each student how to make change
manually. Cash drawer arrangement should read right to left.
Students should read each bill. Tens, Twenties and Fifties look very much alike. You don’t want a student giving
change of a twenty-dollar bill when in fact the customer gave them a ten. It is very important for students to
announce the amount tendered, i.e., “Amount of sale is $8.00 out of $10.00, your change is $2.00.” before giving
change, do not place money in cash drawer until the transaction is complete.
Whenever possible, temptation should be removed for student workers. The register drawer opening change fund
should be kept small. Managers should remove excess cash and make a “drop” to the store advisor’s office. These
drops should be recorded on a form, or as a paid out on the detail tape.
C. Accepting Checks
Most stores ask for two (2) forms of ID when accepting checks. In your school store, you are more familiar with
your customers so you may make your own rules. Asking for telephone number and the students’ homeroom is a
good idea.
It is most important to have a prior agreement with the Administration on the subject of RETURNED CHECKS.
The final decision is up to you and Administrator. If you decided to post a fine or service charge, it is necessary to
inform your customers of the policy. You should have a stamp made for your check endorsements—For Deposit
Only.
D. Credit Cards
Credit cards are not ATM cards unless specified (i.e., VISA, MasterCard). Most school stores do not have this
luxury. If you are fortunate enough to be able to have a credit card machine, you must remember that there is a
percentage given to the bank (between 2% and 4% per sale depending on volume). At the end of the month, you
must deduct this percentage from your sales and checkbook.
You may decide to have in-school credit. Often this is interested in accounting. You need a triplicate receipt book.
This will enable the student to give a copy of the sales transaction to the customer, to your inventory clerk and one
copy is forwarded to your accounts payable for posting to the ongoing charge account.
When the customer makes a payment, this transaction is known as a ROA (payment received on account). Again,
you need a triplicate sales slip—(one copy to the customer, one copy to inventory and one copy to your accounts
payable). When you begin your House Accounts, set rules and regulations such as limits and payment schedule.
Monthly statements should be sent as a reminder of amount due.
If you offer credit to your marketing education students, a form should be sent to parents for their signed approval.
Definitely, a limit should be set for students. My suggestion is no more than $100.00. Remember, a student
28
should not be permitted to graduate unless all financial obligations are met. My one steadfast rule is that a payment
is required from everyone twice a month.
E. General Guidelines
1. All cash is to be counted at the end of each shift by a minimum of two people, one of which should be the
cashier. An adult should be supervising the activity.
2.
After the cash has been counted, a reconciliation form needs to be completed and signed by the individuals who
counted the cash.
3.
The cash and deposit form from the day’s operation needs to be submitted to the bookkeeper or cashier by a
designated person at the end of the shift. If this procedure is not able to be implemented, then the cash needs
to be given to a designated person in the administration office that has access to a wall or locked safe. At no
time should any money be kept in the school store or classroom facility. The money needs to be
counted on a daily basis.
4.
The bookkeeper, upon receiving the money from the school store, should immediately count the money and
verify it with the student cashiers’ report. A copy of this verification should be given to the student to be
turned into the manager/instructor for proper record keeping.
5.
At no time should any cash from the school store be used for business or personal use. A procedure for
purchasing has been established and should be used at all times by instructor and students.
6.
Both the cashier and supervisor on duty must immediately correct all transactions that are considered to be
errors.
7.
All returns must be documented at the time of the transaction by a supervisor.
8.
All sales must be transacted through a register system, if available. No manual sales will be authorized without
the instructor’s permission.
9.
All sales will take place during the posted hours of operation.
10. A sound bookkeeping process must support all credit sales.
11. All changed funds should be returned daily to the administrator in charge of cash funds for safekeeping. No
change funds will be kept in the school store unless authorized by the proper administrator and instructor.
12. All instructors are encouraged to purchase and implement an electronic point of sale cash register system as
soon as possible.
13. Leave all cash register drawers open when the school store is closed. An open cash drawer is a deterrent to
potential break-ins. It also minimizes damage if a break-in should occur.
14. The change funds for the school store should be obtained by your ASB bookkeeper through an impress
checking account.
15. A daily file folder for every day of the school year should be kept with the following receipts and forms
enclosed: (on holidays and non-operating days, a note should be kept in the file identifying why the store was
not operating for that specific day).
a.
b.
c.
d.
e.
f.
g.
Cashiers reconciliation form with the Z tape or computerized report attached.
The daily sales deposit form.
Any report of sales generated from the computerized POS system.
Journal and Z tapes or computerized reports. A weekly cumulative report of sales at the end
of the week.
A written report of any discrepancies that occurred during the day, week, month. The
manager, supervisor, and cashier must all be a party to the report and each must sign the
document.
A written report on how each of the discrepancies was handled. The auditor needs to see that
there was action taken to rectify the problem.
The receipt received from the ASB bookkeeper to verify that the deposit was properly handled
on a timely basis.
29
School store accountings records are considered to be public documents and are to be retained for a minimum of five
(5) to seven (7) years. Your school administration will be able to work with you in regards to the local policy
regarding record keeping.
Proper accounting controls call for all duties in the store to be isolated from one another to provide a check and
balance system.
A. One person should work the cash register until the end of their shift and then be responsible for the counting
and balancing of their cash drawer. A supervisor then needs to sign off on the cashier’s form to make sure there
were no shortages or overages. The cashier also needs to be the one that takes the order, receives the cash due
for the purchases and provides the proper change to customer.
B. A second person needs to retrieve the merchandise from the shelf, verify the price with the cashier, and deliver
the product to the customer.
C. When using the cash register, the cashier should count the money received by the customer, give them their
change due before placing the money received into the cash drawer.
D. There should be no free food given to employees .
E. There should be no chewing gum, eating or drinking by employees while working in the store.
F. If an employee wants to make a purchase from the school store they must do it at the end of the shift and the
transaction needs to be made by the manager or supervisor. Under no circumstances should an employee sell
merchandise to themselves.
F. References
Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (1997). Marketing Essentials (2nd ed.) [pp. 229-233, 234-236, 238,
480-482]. New York: Glencoe/McGraw-Hill.
Marketing Education Resource Center. (1989). Completing Charge Sales Checks [Mathematics LAP 21].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1991). Completing Charge Sales Checks: Instructor Section [Mathematics
LAP 21]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1989). Completing Sales Checks [Mathematics LAP 48]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1991). Completing Sales Checks: Instructor Section [Mathematics LAP 48].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1999). Credit and Its Importance [Financing LAP 2]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1996). Credit and Its Importance: Instructor Section [Financing LAP 2].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1999). Legal Considerations in Granting Credit [Financing LAP 1].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1994). Legal Considerations in Granting Credit: Instructor Section
[Financing LAP 1]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1991). Making Change [Mathematics LAP 50]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1991). Making Change: Instructor Section [Mathematics LAP 50].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1989). Preparing Cash Drawers [Mathematics LAP 47]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1991). Preparing Cash Drawers: Instructor Section [Mathematics LAP
47]. Columbus, Ohio: Author.
30
X.
ACCOUNTING
A. The Basics
You need to learn about the basics of bookkeeping and accounting so you can put into practice a sound accounting
system that will aid in passing school audits. School stores that generate a lot of money will catch the eye of the
auditor and they will scrutinize your records. In cases where there are large losses or improper records kept, the adult
supervisor will be held accountable. The best insurance against a bad situation is to protect yourself with a good
accounting system. An accounting system will alert you to any losses immediately.
When setting up your accounting system you will need the following accounts.
• Cash Receipts
• Cash Disbursements
• Accounts Receivable, if you extend credit to your customers
• Accounts Payable, if you purchase products from your suppliers on credit
The first stage of your bookkeeping system is to enter daily transactions into journals.
Cash Receipts Journal
In this journal, you need to enter your daily cash deposits. You can get this total off the daily deposit form you
give to the ASB bookkeeper. Make sure you enter the day’s date and total sales. Your last column will be for the
running balance.
Cash Disbursement Journal
This is where you record your daily cash disbursements, or the money you pay out each day.
Ledgers
A general ledger usually has a separate page for each account. If you extend credit to your customers, you should
also keep a separate ledger for accounts receivable. You need an accounts payable ledger for each of your vendors to
record information about balances owed.
Financial Statements
Using the information you've recorded in your journal entries, you can prepare your financial statements, which are
used for measuring the progress of your store in terms of its income, expenses, and assets.
Income and Expense Statement
The income and expense statement takes the total amounts of all the income and expense accounts from the trial
balance in the ledger. If the income is more than the expenses then you have a net income or net profit and if the
expenses are more than the income then you have a net loss. These statements should be prepared monthly and kept
in a file so the auditor will have easy access to them.
Balance Sheet
The balance sheet is a financial statement that describes your company's assets, the amount it owes, and its equity,
or the amount that is clear of debt. Current assets, or the amount that can easily convert to cash, are recorded first.
Then come the liabilities, or debt. The equity is figured out by using the income statement as to whether there was
a net profit or loss. If there was a loss it will be deducted from the equity and if there is a net profit that will be
added to equity.
School organizations, depending on your state requirements, will satisfy sales tax requirements if they pay retail
sales tax to their suppliers when they purchase items for fund-raising purposes. If the fund-raising organization does
not pay sales tax, the fund-raising organization must pay a compensating use tax directly to the Department of
Revenue. Check your state laws for complete accuracy.
B. Accounting Records
School store accounting records are considered public records and are to be retained for at least five to seven years
depending on your state requirements.
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C. Accounting Software
There are literally hundreds of different accounting and bookkeeping software programs you can choose from
depending on your needs. Most bookkeeping software can handle double-entry accounting, inventory, payroll,
receivables, payables, and cutting checks. Most packages come loaded with templates for invoices, sales orders, and
other bookkeeping paperwork. When selecting your software keep in mind what your needs are and what type of
business you are operating.
The following are four different programs that seem to be popular with small business.
• Quicken (Intuit)
• First Accounting (Peachtree)
• Quick Books Pro 2000 (Intuit)
• Complete Accounting (Peachtree)
Quick Books Pro is an easy way to manage your school store. If you already have an older version, you can
download the updated version off the Internet. Some of the features of Quick Books include the following:
• Automatically calculates earnings and deductions
• Tracks checking accounts, reconciles
• Tracks inventory and purchase orders
• Complete financial management
• Tracks assets, liabilities, equity, loans and more
• Customizes itself to your business
• Prints mailing lists
• Tracks accounts receivable and payables
• Customized reporting with reports and graphs that show you exactly what's going on in your business
• Keeps track of inventory and purchase orders
For more information on bookkeeping and accounting, check web sites as well as books. Some suggested books are
included in the references at the end of this section.
D. Computerized Accounting System
The changes in technology will impact your buying decisions regarding the purchase of a point of sale system for
your school store. To operate a retail business today, you need to do more than replace merchandise on your
shelves. You watch trends, you adjust margins, you project sales, and you vary inventory levels, and manage
personnel. Working with an advisory committee on equipment selection will definitely minimize the hours of
research required for the selection process.
The best advice that we received from industry professionals regarding the purchase of the point of sale system is to
understand first, what information is required for the daily, monthly, and annual reports, then purchase the system
that is able to provide those type of services. It is not necessary to have a system compatible with a local merchant
since each business requires different types of services from their cash register system.
After much deliberation and research, we selected the “Keystroke POS System”. The keystroke system uses PC
terminals, MS organizers, scanners, cash drawers, and a printer. The approximate cost for four (4) stations is
$13,000.00.
The computerized systems provide several data reports at the end of the day. Several of the important categories
that allow you to track daily activities are 1) daily cash sales, and 2) daily cashier reports that identify your
employee transactions. This helps with auditing no sales, voids, mistakes, canceled sales, etc. One of the key
benefits that a POS system provides is the tracking of your perpetual inventory. This will help with managing your
monthly physical inventory, as well as assist your purchasing manager/inventory manager manage the repurchasing
of all goods for your store. This inventory capability will minimize any surprises that are associated with shrinkage.
Keystroke is an open architectural Point-of-Sale software system, therefore, it is very flexible and can be customized
to fit your business. It is a DOS based software that can operate under most operating systems, such as DOS,
Windows 95 & 98, Windows NT, Lantastic, Novell, etc.
It can use non-proprietary hardware like standard PC computers and your choice of what type of receipt printer, cash
drawer, credit card reader, customer pole display, bar code printer or programmable keyboards.
The advantage of a non-proprietary hardware is that you get to choose the hardware that best fits your needs and
everything is modular. So if one component goes bad you can simply unplug it and plug in a new one, and since
the PC hardware is standard, hardware can be repaired by any company of your choice that does PC Repairs. Most
PC components are standard and interchangeable and upgradable.
32
Unlike the proprietary hardware, all components are custom designed for that exact hardware and you cannot use
standard PC components and repairs can usually only be done by the manufacturer or authorized dealer. Which will
cost a lot more than repairs on standard PC equipment and proprietary hardware is usually not upgradable.
Therefore, in a few years if you wanted to upgrade for any reason, you would have to replace the entire hardware
system. These are just a few of the reasons we recommend Keystroke Point of Sale software and non-proprietary
hardware.
E. Daily Receipts/Cash Flow
Assign a reliable student for processing daily receipts. At the close of the school store business, we do an X
reading followed by a Z reading to provide 2 register receipts. One is used for our records and one for the Central
Administrative Office. The student counts the original bank (you make that decision - $30.00 or $50.00) then
counts the remainder of the money that should coincide with the tally sheet of the register.
The student then fills out the END OF THE DAY report and attaches the X out slip to one copy and the Z out slip
to another.
F. Daily Deposits
After the student completes the END OF THE DAY Report, they then accurately fill out a BANK DEPOSIT SLIP,
endorsing any necessary checks. An authorized adult school employee who delivers within the district picks up our
deposits in a locked bank deposit bag. He makes our deposit and returns one slip to the Central Office with the
END OF THE DAY report and our Z out register journal tape. He then delivers a copy of the deposit to the
marketing department where we attach the X out journal tape.
We record our daily deposit slips into a journal tallying them each month. We compare our monthly and yearly
figures to determine profits or losses.
G. Departmental Sales Reports
You can use your X and Z journal tapes to determine the daily dollar amount that was sold within each department.
You must assign a department number for each department. For example, Department 1- gym suits, Department 2sweatshirts and pants, Department 3- everyday gifts.
Using this method you will be able to tally the daily receipts by department followed by the monthly tally and
finally, at the end of the school year tally per department.
At the end of the year, we have a meeting with the executive board of the school store to discuss the figures. If the
department did well, we will continue to purchase that type of merchandise, not necessarily the same. If the
department did not do well, we eliminate that merchandise. (For example, slippers did well, boots did not!)
It is also important to recognize that your merchandise needs to change according to the times. You need change
since your customer base is the same.
H. Balance Sheet
In a balance sheet, you record your total revenue and your total expenses/purchases monthly. This could be called
closing out the month. At the end of the year, you will have your profit/loss figures.
I.
Income Statement/Profit & Loss
The income and expense statement takes the total amounts of all the income and expense accounts from the trial
balance in the ledger. If the income is more than the expenses then you have a net income or net profit. If the
expenses are more than the income, then you will have a net loss. These statements should be prepared monthly
and kept in a file, so the auditor will have easy access to it.
J.
Auditing Procedures Regarding Losses
1.
2.
3.
4.
5.
6.
7.
You need to notify the auditor of any significant losses; make a good effort to find out where the losses
happened.
It is better to have records than not to have them at all.
Deposit receipts need to be intact.
A gross profit analysis should be done monthly.
Spoilage and shrinkage are going to occur, so keep track of it and keep it in your records.
Taking money out of a cash drawer for refund is illegal
Students need to vote on purchases made with school store account monies. Make a copy of your class list and
have students initial by their name on money spent for items such as conferences, etc. It is illegal to give away
public funds. Expenditures for charitable donations, scholarships.
33
8.
9.
You need to keep your records for at least five years, and when you go to destroy the records you need a
witness and a signed document.
Take appropriate action if there are losses.
You need two separate ASB accounts, one for the school store only showing revenue and expenses for the store and
one account for DECA fund-raisers and expenses (conference fees). You can transfer money from the store account to
the DECA account.
K. References
Burrow, J. & Eggland, S. (1995). Marketing Foundations and Functions [pp. 40-41, 634-635]. Cincinnati: SouthWestern Publishing Co.
Marketing Education Resource Center. (1999). Business Records [Management LAP 58]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1999). Business Records: Instructor Section [Management LAP 58].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1999). Cash Flow [Management LAP 60]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1999). Cash Flow: Instructor Section [Management LAP 60]. Columbus,
Ohio: Author.
Marketing Education Resource Center. (1996). Nature of Accounting [Marketing and Business LAP 9]. Columbus,
Ohio: Author.
Marketing Education Resource Center. (1996). Nature of Accounting: Instructor Section [Marketing and Business
LAP 9]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1999). Profit and Loss Statements [Management LAP 61]. Columbus,
Ohio: Author.
Marketing Education Resource Center. (1999). Profit and Loss Statements: Instructor section [Management LAP
61]. Columbus, Ohio: Author.
Keeping the Books: Basic Record Keeping and Accounting for the Small Business, Plus Up-to-Date Tax
Information, by Linda Pinson & Jerry Jinnett
Business Owner's Guide to Accounting & Bookkeeping, by Jose Placencia, et al.
Accounting and Record Keeping Made Easy for the Self-employed, by Jack Fox
Organize Your Books in 6 Easy Steps: A Workbook for the Sole Proprietor Service-Oriented Business by Donna M.
Murphy
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XI. PROMOTION
A. Sales Promotion
Promotion activities are used to inform, persuade, and remind customers about a business' goods and services. The
school store, like other business, should utilize promotional activities that will communicate messages effectively
within the limited financial resources and available media.
All promotional efforts should be coordinated with the merchandise and services available in the store and aimed at
the appropriate target audiences, such as students, clubs, school staff, athletes, and parents. In addition,
promotional campaigns should be timely. Throughout the school year, there are many occasions that provide
opportunities for promotional themes.
The promotional mix may vary considerably, depending on the type of business. For most school stores, major
promotional activities may include visual merchandising, advertising, publicity and special events/promotions.
Assigning a promotional department manager to oversee the promotional activities provides valuable assistance to
the store operator as well as providing an ideal learning opportunity. Department workers can be assigned to work
with specific promotional activities as needed by your business.
B. Visual Merchandising/Display
Visual merchandising consists of exterior window displays, interior displays, and counter displays. Students
should have an active role in planning, building, maintaining, and dismantling displays. These jobs may be
assigned to a group of students in a promotion department, or to individual students on a rotating basis.
Visual merchandising addresses a number of goals for a school store. They include:
• Attracting the attention of shoppers
• Stimulating interest in a product or service
• Showing ways in which a product can be used
• Helping consumers make selections
• Identifying and promoting newly arrived merchandise
• Suggesting additional merchandise to purchase
The store’s product mix and the amount of service you will provide will be a determining factor in the type of floor
layout you will design, the fixtures you will incorporate, and how you arrange the merchandise for effective visual
merchandising. Products that can be sold as impulse items are often displayed near a check-out area. These point-ofpurchase displays, or POP’s, are very effective in promoting many items sold in a school store. Products that are
not normally considered impulse items would be more effectively promoted in a window display or on the sales
floor. Any well-planned display can help to increase sales for just about every business.
The ultimate purpose of visual merchandising is to create in the customer, either directly or indirectly, a desire to
buy the store’s merchandise. The main focus of your visual merchandising efforts will be promotional, or directly
geared toward selling specific merchandise that you display. Indirectly, some of a school store’s visual
merchandising can be institutional in nature (designed to sell the business’ name or service rather than specific
merchandise or services for sale). Promoting the store’s commitment to serving the customer, stressing the quality
of the merchandise, or highlighting the brand names you carry can promote the institutional image of your business.
C. Advertising
Advertising is essential to almost every business. This form of promotion will be directed toward a mass audience.
Advertising requires the use of media, or channels used to communicate your message. Advertising must be
directed to a specific target market in order for the ad’s message to be received.
Some specific promotional goals of advertising might include the following:
• increasing sales volume
• increasing the number of customers
• attracting new customers
• reinforcing user satisfaction
• establishing the image of the store
• reinforcing user satisfaction
• announcing locations where products will be sold
• introducing new products
• leveling out sales volume
• clearing out merchandise at the end of the season
35
Advertising activities which students can carry out as part of the school store’s promotional campaign may include:
• School newspaper ads
• Morning announcements - audio or video
• Banners - inside or outside of school
• Local cablevision - taped video or audio commercials
• Electronic signs in the store or cafeteria
• Direct mail targeted to specific groups
• Ads in yearbooks, programs, or other specialty publications
• Flyers
• Hallway posters
• Sandwich boards
• E-commerce Web sites
• Catalogs
Just as in visual merchandising, advertising may take one of two forms. The majority of advertising can be
promotional, presenting specific products or services offered for sale by your store. In addition, some forms of
advertising may be institutional, presenting your store’s image, an event, or theme of public interest, rather than the
merchandise.
D. Publicity
Publicity is used along with your promotional activities to build a positive image for your business. Since school
store advertising budgets are typically very limited, the store operator should encourage students assigned to this
function to identify and capitalize on all publicity opportunities to supplement paid forms of promotion. Publicity
attempts to place newsworthy items about a business or product in the media without cost. Sponsoring various
activities, events, or clubs in school and having these events reported in the school or local media, would be a great
way to receive publicity. Some store-based publicity activities might include:
• Sponsoring a club activity
• Sponsoring school based scholarship
• Awarding employee excellence
• Donating products for school activities
• Carrying a unique product or service
• Sponsoring a team
• Conducting an open house
• Making donations to charities
• Sponsoring a fashion show
• Sponsoring an environmental or beautification program
For any publicity activity, you need to be prepared to call attention to your business. The media may be unaware of
your activities, so you may be required to write a news release, submit an article or photo, or even call a press
conference to get the word out about your positive activities.
E. Personal Selling
All personnel are important sellers to the customer. Poor selling techniques can diminish much of the effectiveness
of the store’s promotional efforts by sales personnel. The store’s selling policies need to be coordinated with the
promotional efforts in order to create continuity between the promotional and personal selling activities. Obviously
for low-priced convenience goods, selling is not really necessary, but for any of the store’s shopping and/or
specialty goods, selling will be essential.
Students should be involved from beginning to end in the creation and development of visual merchandising,
advertising, publicity, and special promotions. The promotion function provides an excellent opportunity for
students to identify their talents and display their creativity. For those with special talents and abilities, it is an
opportunity to further develop their potential.
F. Promotion Planning
Does promotion work? What are my options when promoting my school based enterprise? Can I afford it? Can I
afford not to promote it?
Just like businesses in the real world, we must develop a promotional mix that will effectively promote our SBEs.
Each of us teaches promotion as part of our marketing curriculum. Let's allow our students to put into practice
what we preach.
36
Initially, there are several questions that you may want to address relating to promotion. Some of these may
include:
• Who are my customers?
• What are my promotional goals and objectives?
• What is my budget?
• What should I include in my promotional mix?
• What support can I obtain from the business community?
• How do I measure the effectiveness of the promotional activity?
Customers (target market) – Many of our stores are unique and appeal to different markets. Do you target students,
faculty, staff, parents, and members of your local community? Your promotional activities will vary depending
upon your target market.
Goals and Objectives – If you don't know where you are going, how will you know if you have arrived? Develop
practical and obtainable goals and objectives for your SBE. Do you elect to develop a promotional or an
institutional campaign? Are you introducing a new product or service? Are you in a new location? There should
always be a purpose and objective when developing your promotional campaign.
Budget – How much should I spend on this campaign? How do I determine my budget? Are cooperative
advertising dollars available? Did I get the "biggest bang for the buck?" These questions can often be difficult to
answer but are necessary because they offer realistic situations that relate to our programs.
Promotional Mix – What are the promotional options that we may choose to include in the promotional campaign?
How do we coordinate these efforts? Many (if not all) of the following elements of promotion may be included in
your campaign:
• Advertising
• Visual Merchandising
• Publicity
• Sales Promotion
• Salesmanship
Each of the above elements of promotion will directly complement your curriculum. They will provide meaningful
applications to these units of study.
Business/Community Support – There is little doubt that incorporating the business community into your
promotional campaign will generate many positive results. Who are your resources to call upon for support? How
will you utilize these resources?
Evaluating the Campaign – If you established goals for your campaign, measuring the effectiveness should be
obtainable. Are you measuring any increases in sales or customer acceptance of new products? Did the new
displays and point-of-sale materials help to meet our goals? Did the students have the opportunity to apply specific
skills and knowledge to the campaign? Did we establish new and improved relations with the business
community? Are the administration, faculty, and student body appreciative or receptive of your efforts to operate an
effective SBE?
One activity that may be used for promotion is the publication of a catalog of items carried in your school store
(i.e., Christmas). This catalog may be circulated throughout the district and sent home to parents.
Another activity may be to offer samples of specials or promotional items. An example would be a balloon(s) with
candy attached for a quick gift for birthdays, anniversaries, get well, etc. Also, you may display pre-wrapped gifts
to further show that you may accommodate gift needs.
Teachers may want to offer small seminars to students to introduce new items or new product lines that are
unfamiliar to the student. Such departmental examples would include clothing (understanding size ranges and
fabrications), giftware (understanding the difference between china, resin and plastic and the usefulness of the gift).
These seminars will enhance the student’s product knowledge and enable the item to better sales people.
G. Special Events
A. Opening day of school
1. “Apple for the Teacher”—Marketing students place an apple on each teacher’s desk the day before school
begins. This should be accompanied by a handout, the theme of which might be: “Welcome back to
School! Please visit the school store for all of your class and personal needs.” Faculty discount cards
would be an item for consideration.
2. If permissible, a rock band might be hired to play at your store’s grand opening.
37
3.
4.
5.
6.
A school-wide contest to name the school store (if not done prior to opening day) with the prize being a
gift certificate or merchandise from the store.
Using the customer receipt as an entry blank, a weekly drawing might be held for only store patrons.
Offer free merchandise donated by local merchants. A good school spirit item is pencils with "Marketing,
DECA," or your high school name on them.
A grab bag idea — have a combination of gift items in a specially priced package for the first week of
business.
B. Holidays and Special Events
1. Build activities and events around your local holidays
2. Gift certificates for all of the special holidays
3. A school spirit week
4. DECA week
5. Professional/Technical week
Also, Consider These Other Promotional and Merchandising Ideas:
• The school store becomes a specialty shop, offering items such as porcelain, pottery, beanie babies, and
other collectibles. A mini-mall concept, with a number of small specialty items can be another approach.
Community members may also be interested in purchasing some of these specialty items.
• Silk screening presses for T-shirts, sweatshirts, and other spirit items.
• To encourage the notion that the school store is available to everyone you will need to open the door of
opportunity for clubs, faculty and other groups to be able to sell their product through your store. This can
be a profitable adventure for the school store by charging a service or handling fee for selling the different
items. Some examples would be selling the P.E. uniform, flowers from the horticulture program, and
creative gifts as jewelry/pottery from the Art department, and spirit items from ASB.
• Spirit items with the high school name and emblem can be sold at the middle and elementary schools.
This will provide the instructor with a recruiting opportunity for the marketing program.
• To help clear old inventory, you might offer items in grab bags at a discounted rate. Be sure to keep track
of the items you discounted for accounting purposes by adding them to your spoilage form.
• A good way to get faculty to frequent your store is to offer to “host” the faculty coffeepot in the store.
You may also consider subsidizing the expense of the coffee so substitute teachers can have a free cup of
coffee, when needed.
• Consider the possibility of E-commerce by having your students develop a Web site. When the students
determine the distribution system, this will become a much-used service, both on campus and off campus.
• Offer a tax service, short form, to the students and local community as a fund-raiser. This would be an
activity that would require a partnership with the accounting department at your school or the local
community college. If you have a local strip mall or mall in your area, you might consider procuring a
vacant spot/location to do the tax preparation.
• Special sales promotion, such as: games, sidewalk sales, fashion shows, rebates, raffles, grab bags,
contests, frequent purchase programs, coupons, or free sample/giveaways.
H. Learning Activities
Numerous activities will complement your promotional campaign and offer pragmatic applications to your units of
study. Some of these may include:
1. Guest speakers
2. Field trips (newspapers, advertising agencies, businesses, etc.)
3. Sales representatives/vendors to discuss specific programs
4. Sales contests
5. Developing sales promotion activities
6. Obtaining manufacturer support (POP, POS, cooperative advertising dollars, promotional products, etc.)
7. Creating displays
8. Preparing advertisements
9. Visit other SBEs
I.
References
Burrow, J. & Eggland, S. (1995). Marketing Foundations and Functions [pp. 523-526, 528-532]. Cincinnati:
South-Western Publishing Co.
Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (1997). Marketing Essentials (2nd Ed.) [pp. 200-201, 245-255, 271273, 282-295, 297, 389, 467, 520]. New York: Glencoe/McGraw-Hill.
Marketing Education Resource Center. (1990). Calculating Media Costs [Promotion LAP 6]. Columbus, Ohio:
Author.
38
Marketing Education Resource Center. (1990). Calculating Media Costs: Instructor Section [Promotion LAP 6].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1994). Parts of Print Ads [Promotion LAP 7]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1994). Parts of Print Ads: Instructor Section [Promotion LAP 7].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1997). Preparing Print Ad Copy [Promotion LAP 9]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1994). Preparing Print Ad Copy: Instructor Section [Promotion LAP 9].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1995). Promoting Through Publicity [Promotion LAP 8]. Columbus,
Ohio: Author.
Marketing Education Resource Center. (1995). Promoting Through Publicity: Instructor Section [Promotion LAP
8]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1993). Promotion [Promotion LAP 2]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1994). Promotion: Instructor Section [Promotion LAP 2]. Columbus,
Ohio: Author.
Marketing Education Resource Center. (1988). Promotional Mix [Promotion LAP 1]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1988). Promotional Mix: Instructor Section [Promotion LAP 1].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1990). Selecting Promotional Media [Promotion LAP 5]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1990). Selecting Promotional Media: Instructor Section [Promotion LAP
5]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1994). Types of Promotional Media [Promotion LAP 3]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1994). Types of Promotional Media: Instructor Section [Promotion LAP
3]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1995). Writing News Releases [Promotion LAP 10]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1995). Writing News Releases: Instructor Section [Promotion LAP 10].
Columbus, Ohio: Author.
39
XII. PERSONAL SELLING/CUSTOMER SERVICE
A. Selling Function
All workers in a school-based enterprise will be required to perform activities in the selling function. When a
student takes the role of the front line sales associate, a working knowledge of the selling process will be crucial in
creating sales for the business. There is no exact way or method to conduct every selling situation, but having a
basic understanding of the entire selling process will help sales associates to be effective in providing personalized
customer service. Every school-based enterprise will rely on repeat sales from satisfied customers who will have
been given personalized customer service by your sales staff.
The selling process generally consists of the following basic elements or steps.
B. Pre-approach
Sales associates must be able to exhibit knowledge of merchandise features and benefits. They must have a working
knowledge of prices and sale items. Knowledge of product features alone will have little impact on a customer.
Features become meaningful only when the customer can relate to something that will benefit them personally.
Customers buy what the product will mean to them. Product or service knowledge is the foundation for any
successful sales associate. Included in this knowledge would be:
• What brands, colors, sizes, and styles does the business carry?
• Knowledge of your store’s retail prices and how they compare with the competition.
• Be familiar with merchandise tags and care instructions. Knowledge of product composition and the
manufacturing process would be very helpful.
• Know the location of the merchandise in the business. Workers should know where merchandise is kept and
the current stock condition.
• Know what is being promoted and what is on sale.
• Know merchandise in other departments.
• Know how items in inventory are related to each other. Be prepared to sell related merchandise.
• If you handle the merchandise, try items on, spend time with it, you will automatically become more
knowledgeable. The best source of product knowledge is firsthand experience.
• Know and follow company policy and services.
In addition to obtaining basic knowledge of the product, sales associates should also be familiar with the typical
customer who will be shopping the business. Part of this customer knowledge will be an understanding of the
buying motives of your target population(s). Being prepared to deal with the various motives of a teenager or adult
will make the job of communicating with and satisfying their needs and wants a much easier task.
C. Approach/Greeting
The step in the selling process when the customer and the sales associate first communicate is the approach.
Getting off to a good start with your customers can set the tone for the entire customer visit. Some ways to ensure
that positive impressions are made are:
• Approach or address the customer first. Being the first to speak is a sign that the associate is interested in the
customer.
• Smile and use a friendly greeting.
• Use the customer’s name, if possible. When the sales associate provides their name, personal communication
can be established.
• Always try to be positive during the entire sales process.
• Be prepared to adjust your sales talk depending on the type of customer you are working with.
The sales associate approaches the customer to gain their attention, then directs the customer toward merchandise
available for sale. In a school-based enterprise, the selling situation will typically be more informal than in a
typical retail store situation. The greeting or service approach will probably be a more appropriate method to use,
depending on the products or services you are selling. In any situation, providing good customer service and
prompt attention to all customers will be vital in the success of your business. Part of your selling policies might
include a statement or two regarding the timing of an approach, or typical lines that might be used depending on the
merchandise or type of customer. In every case, the customer should be given immediate attention and approached
promptly, with a friendly, courteous attitude. Sales associates should use one of the three basic approaches:
40
•
The Greeting Approach should be used when a customer enters the business and has not yet shown an interest
in specific merchandise. It is a great way to welcome customers to your business. If the customer’s name is
known, use it with your greeting if possible. A customer who shops at a store and feels welcome will return.
Examples: “Hi, How are you today?”
“How are you doing today Ms. Smith, may I take your order?”
“Hi Mr. Davis, did your family enjoy your trip to Florida?”
•
The Merchandise Approach refers to greeting the customer by commenting on the merchandise they are
looking at. Use this approach to focus attention directly on the merchandise and arouse the customer’s
attention. When used properly, the merchandise approach gives the sales associate the opportunity to begin the
selling the product.
Examples: “We’ve just received those . . ..”
“I see you’re looking at the Jansport backpacks. They’re our best sellers.”
“We are having a special sale on athletic shoes this week. Do you have a brand preference?”
•
The Service Approach offers assistance to the customer. When the customer looks like they need help, or if
they appear to be in a hurry, then the service approach would be appropriate. Sales associates need to be careful
that they do not overuse this approach, because it may encourage a negative response by the customer. The
service approach is best when used in combination with a greeting approach.
Examples: “Hi, how may I help you?”
“Can I help you find your size?”
“Hello Mr. Jones. Is there something in particular you were looking for?”
D. Determine Needs and Wants
Every customer that enters a business will come with special needs and wants. It is the role of the sales associate to
find out what the customer has an interest in, and the reason for why they want the item. By asking the right
questions, a good sales associate can identify the buying motive and then provide a product or service that will
satisfy the customer’s identified needs. On occasion, some customers will tell you exactly what they want, buy
many will not provide their need or want without the sales associate’s help. The use of open-ended questions is an
excellent method to use to get customers to provide you with their needs and wants. By listening to the customer’s
answers, and observing their reactions, the sales associate can move right into presenting appropriate merchandise or
services.
Example of open-ended questions might include:
“What features do you feel are important to you?”
“For whom are you shopping?”
“What clothing style do you prefer?”
“What brings you into the store today?”
One area that salespeople must keep in mind is that the immediate customer may not be the final consumer of the
product being presented. The sales associate should always determine the final consumer, and match their efforts to
the final user.
E. Make the Presentation
Once the needs or wants of a customer have been identified (determined), it will be the role of an effective sales
associate to attempt to fill those needs with an appropriate product or service that will be acceptable to the customer.
The sales associate should select products appropriate for the customer. When presented, the intent will be to
satisfy the customer’s needs and wants.
During the presentation, the sales associate must not only talk but also listen. They must involve the customer in
the presentation. Effective sales associates get the product in the customer’s hands and attempt to involve as many
of the five senses as possible in their presentation. Show the merchandise in action. Handle the merchandise with
care. Treat the stock like it is someone else’s property. Get the customer involved in the presentation. Remember
to stress the product’s benefits to the consumer.
On a number of occasions, a sales associate may not be able to satisfy the customer’s specific request for a brand,
style, or color. The sales associate should be able to substitute sell merchandise that is similar in features and
benefits that you currently have in stock.
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F. Handle Complaints/Objections
Customer’s objections may come at any time in the selling process. Objections are natural, arising primarily from
customer’s lack of understanding of the product’s features or its benefits. The best way to handle objections is to
expect them and be prepared to provide the customer with information that will resolve their concern with the
product or service. A sales associate should welcome objections. They are a signal the customer is interested in the
product. They also highlight the reason for not buying. They are signposts that highlight where to direct your
efforts. Most often, objections for not buying can be matched to the five basic buying decisions — decisions about
the need, product, price, source, or time. You can prepare for most objections by anticipating them and planning
possible responses to them. Using various techniques to overcome objections will allow the sales associate to
reassure the customer that their needs will be met. Once you remove the customer’s concern with the product, you
should direct your efforts toward getting the customer to say, “Yes”.
General rules for handling objections include:
• Listen to the objection.
• Ask open-ended questions if you need more information or to clarify the objection.
• Agree that the customer has a valid concern. Restate the objection to let them know you understand their
concern.
• Reassure the customer by stressing benefits.
• Be positive in your approach. Don’t be discouraged.
• Turn objections into an opportunity to sell.
• After overcoming the objection, ask for the close.
Techniques used to answer objections may include the following methods:
• Yes, but method
• Direct denial method
• Superior point method
• Boomerang method
• Question method
• Demonstration (show-em) method
• Third party (testimonial) method
• Close-on-objection method
G. Close the Sale
The goal of every sales presentation is to get the customer to close the sale. From the very beginning of the sales
presentation, the sales associate should look for an opportunity to ask the customer to buy. The sales associate
needs to observe and listen for buying signals from the customer that they are ready to buy.
Some sample buying signals might include:
• Facial expressions along with the focus of the customer’s eyes.
• Actions or body language that indicate the customer is ready to make a decision.
• Favorable responses to your questions.
• Did the customer show interest in one item? Did they keep coming back to an item or repeatedly pick it
up?
• Did they make favorable comments about the merchandise? Do they make comments that imply
ownership?
Once you recognize a buying signal, you should attempt to close the sale. Numerous techniques for closing may be
tried, generally depending on the individual selling situation.
H. Suggest Additional Items
A natural time to suggest additional merchandise is when the sales associate closes the sale. The sales associate
should realize that suggestive selling is important in each and every selling situation. The associate should
determine if there are any other needs that could be met by suggesting additional merchandise or service. Attempt
to make sure the customer perceives the suggestion as a helpful reminders, rather that pressure to purchase additional
merchandise.
42
Typical methods to increase the sale might include:
• Suggest related items.
• Suggest newly arrived items.
• Suggest a larger quantity.
• Suggest trading up to higher priced, better quality merchandise.
• Suggest new or additional uses for merchandise.
• Suggest specially advertised items.
• Suggest merchandise for special occasions.
I.
Reassurance and Follow-up
After a successful closing, and before the customer leaves your store, the salesperson should reassure the person of
the wise buying decision they have made. Always thank the customer for shopping at your business and invite
them to shop again. The salesperson should then follow-up the sale at a later date to check if all conditions of the
sale have been completed and if the item purchased met the customer’s needs. Also the follow-up is a great
opportunity to inquire about future product needs of the customer.
J.
Sales Related Activities
In addition to providing great customer service in the personal selling process, the worker will also be required to
complete a number or sales related activities. Included in these activities might be the recording of sales checks
completely and accurately. Sales workers may also be assigned cashiering duties and activities, including accurately
handling money, completing check and credit card transactions, and handling various other selling forms and
procedures.
Using the telephone as part of the selling process will be another important selling related activity for the schoolbased enterprise worker. Most customers use the telephone as a way to save time by not having to visit the
business to inquire about the merchandise, hours of operation, or specific prices. The sales associate’s role in
dealing with telephone customers is to provide prompt, knowledgeable, and accurate information as requested in the
inquiry. A goal in telephone selling is to turn the phone caller into a loyal customer for both the sales associate and
the business.
K. Selling Policies
In addition to a thorough knowledge of the product and the customer, the SBE sales associate should also be well
versed in the enterprise’s policies as they relate to selling. Policy guidelines might address one or more of the
following.
Pricing Policies — The sales associate should be familiar with the enterprise’s formal mark-up procedures. In
addition, are discounts available for various groups of customers, such as the SBE staff, the professional school
staff, or the school’s sports team or various club members? Also, will sales associates have any flexibility in
negotiating the retail price?
Return Policies — Will the customer be allowed to return merchandise to the business? What, if any, restrictions
are placed on items sold by the business? Will the enterprise guarantee the product’s freshness, performance,
wearability, or construction?
Delivery Policies — Will delivery be available when selling items such as food, flowers, balloons, gifts, or general
merchandise?
Selling Process Policies — What components of the selling process should be stressed in the SBE’s selling
activities? Selling activities may depend on the type of business operation, merchandise sold, or the presence of
specific written store policies. Areas such as when and how to approach a customer, prospecting duties of the sales
associate, and how much merchandise to show a customer in the sales presentation should be addressed.
L. References
Burrow, J. & Eggland, S. (1995). Marketing Foundations and Functions [pp. 527-528, 573-577, 589-591].
Cincinnati: South-Western Publishing Co.
Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (1997). Marketing Essentials (2nd ed.) [pp. 16, 187, 191-193, 206215, 225, 342-343]. New York: Glencoe/McGraw-Hill.
Marketing Education Resource Center. (1998). Closing Sales [Selling LAP 107]. Columbus, Ohio: Author.
43
Marketing Education Resource Center. (1996). Closing Sales: Instructor Section [Selling LAP 107]. Columbus,
Ohio: Author.
Marketing Education Resource Center. (1996). Handling Customer Complaints [Human Relations LAP 23].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1996). Handling Customer Complaints: Instructor Section [Human
Relations LAP 23]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1996). Handling Difficult Customers [Human Relations LAP 21].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1996). Handling Difficult Customers: Instructor Section [Human Relations
LAP 21]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1995). Handling Objections [Selling LAP 100]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1991). Handling Objections: Instructor Section [Selling LAP 100].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1995). Opening the Retail Sale [Selling LAP 101]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1996). Opening the Retail Sale: Instructor Section [Selling LAP 101].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1998). Selling [Selling LAP 117]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1998). Selling: Instructor Section [Selling LAP 117]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1999). The Selling Process [Selling LAP 126]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1996). The Selling Process: Instructor Section [Selling LAP 126].
Columbus, Ohio: Author
Marketing Education Resource Center. (1997). Using Buying Motives: Part 1 [Selling LAP 102]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1991). Using Buying Motives: Part 1: Instructor Section [Selling LAP
102]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1996). Using Buying Motives: Part 2 [Selling LAP 109]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1991). Using Buying Motives: Part 2: Instructor Section [Selling LAP
109]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1998). Using Suggestion Selling [Selling LAP 110]. Columbus, Ohio:
Author.
Marketing Education Resource Center. (1995). Using Suggestion Selling: Instructor Section [Selling LAP 110].
Columbus, Ohio: Author.
44
XIII.
POLICIES
A. Areas to Address
A positive program of orientation for new employees should be established, preferably in writing. With a written
manual format, you will be able to communicate to your workers the SBE's procedures, rules, expectations, goals,
and philosophy. Every business must inform employees what they should and should not do. Some of the basic
areas to address with specific written policies might include the following:
Hours of Operation—time to report for work, scheduled break time, will a time clock be used, will additional
hours beyond the school day be required, i.e., special events, open houses.
Absences and Tardiness—stress the importance of being reliable and punctual for work. What role will absences
play in a worker's evaluation and grading? Employees are expected to know their work schedules. If a worker will
be absent or unavailable to work, how to find a substitute.
Telephone Procedures—Including taking messages, transferring calls, answering customer inquiries, selling,
providing product knowledge, and use of the phone for personal use.
Dress Code—What is and is not appropriate to wear? Is a uniform or identification badge required to be worn?
Identify basic grooming and personal cleanliness requirements.
Employee and Customer Safety—What to do in the case of a medical emergency. How to handle fire drills and
weather-related drills. How to identify and correct unsafe acts or conditions.
Personal Behavior—How they should act, what will be expected of them. Workers should keep a business like
attitude at all time, avoiding fooling around, horseplay, swearing, or wandering outside of their assigned areas.
Included should be a statement of limitation on visiting with friends and how to keep busy showing initiative in
completing routine tasks.
Consumption of food or beverages during business hours. Also the use of gum, toothpicks, or other oral objects
should be addressed.
Another key procedure is employee purchases, for both food and general merchandise. Having a time scheduled,
special forms to complete, and authorization to make purchases, and discounts available will smooth any problem
areas related to this activity.
Maintenance—What needs to be cleaned? How often? (hourly, daily, weekly) Who is responsible for cleaning? A
cleaning schedule is a helpful tool for these routine tasks.
Reprimands and Grounds for Dismissal from the program—Define what acts will create reprimands and the
consequences of the reprimand. Define what acts would be serious enough to cause removal from the organization.
Evaluations—The purpose of an evaluation is to give each employee feedback on how they are performing in the
business operation. It will identify the employee's strong points and areas they need to improve. The evaluation
will also be used to assist in determining the employee's grade for working in the school-based enterprise.
A business is organized according to the various tasks that need to be done to provide a smooth operation. An
organization chart is an excellent way to show the hierarchy of positions available in the school-based enterprise. A
written statement of job descriptions for each position would provide an informative way for employees not only to
learn their role in the business, but also be a reminder to review when training others. Listed below are two
examples of job task statements found in many school-based enterprises.
Merchandise Staff Worker Duties:
• Receive, count, verify, and record all incoming department merchandise.
• Determine price of merchandise according to department mark-ups.
• Marks merchandise with appropriate tag and label.
• Coordinates orders for department, reviews catalogs, works with vendors, reviews want slips.
• Maintains stock levels.
• Is responsible for department in-store merchandise presentation and board displays.
• Takes physical inventory at appropriate times.
• Determines sale items and end of season markdowns.
• Reports directly to merchandise manager and store advisor.
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Display Worker Duties:
• Designs window displays using proper display techniques.
• Creates window and interior displays.
• Responsible for planning display changes.
• Prepares and coordinates seasonal promotional campaigns.
• Cleans, maintains and stores display props and fixtures.
• Take inventory of supplies and materials used in displays.
• Involved in promotion of the image of the business.
• Reports directly to the promotion manager and store advisor.
Identifying special customer services is included in the policy section of this Guide. Providing a definition of what
the business will offer to consumers creates an incentive to shop and will establish customer loyalty.
Returns and Adjustments—A defined policy for returned merchandise, especially for refunds must be set in
writing. The business can be as restrictive ("All sales final") to as liberal ("Total satisfaction guaranteed") as you
decide. Some guidelines for returns should be considered. They might include:
• All merchandise returns must have an accompanying sales receipt.
• Set a time limit for returns.
• Restrict certain merchandise for refunds. (opened CDs or worn athletic wear)
• Manager or advisor approval is required for all returns.
• Attempt to have the customer make an exchange (even or uneven) instead of a cash refund.
• Provide due bills instead of cash refunds.
• Purchases of sale or clearance merchandise are final.
Delivery— Merchandise such as food, flowers, balloons, or gifts and general merchandise may be sold with
delivery available. The delivery policy should be defined as to include any fees, area limitations, and time
restrictions.
Gift Wrapping—The availability of boxes, bags and gift wrapping may be a valuable service for many schoolbased enterprises. As with delivery policies, limitations need to be defined.
Credit—Depending on the merchandise offer for sale, a business should consider offering some form of credit
policy. For enterprises selling low-priced or consumable goods, credit usually is not an option. For others, the
availability of credit is essential. Accepting bank credit cards is one option. Along with the reduced risk of this
type of credit comes the fees and percentage of the sales that banks charge. Your business may opt to offer its own
credit. By taking this option, along with the increase in sales (full purchase price), comes the potential problems
and costs associated with collecting on late and nonpayment accounts.
Discounts for Special Groups—The availability for special pricing for specific groups will encourage additional
sales and repeat business from those targeted populations. In addition to discounts offered to your enterprise's
workers as described above, your school staff would be one group to focus on. Having staff members using,
wearing, and consuming your products is an excellent way to promote your operation throughout the school.
Specific merchandise designed for staff, such as shirts or coffee mugs are great opportunities for additional sales.
Teams and clubs in the school are other potential target groups to focus on. Special clothing, spirit novelties, or
offering baked cookies for club meetings are merchandise options special groups would value.
Special Orders—Your product offering may present the opportunity to provide for special orders on specific
merchandise from your vendors. Items such as gifts, team clothing, embroidered names on apparel, CDs, or stuffed
animals, are some of the merchandise lines where special requests would be of added service. Check with your
vendors to see if this would be a viable option.
B. Store Policy Manual
This section is designed to guide you through the process of writing an employee or store handbook. Such a
handbook, or manual, is important for every store and company. This format is an easy, inexpensive way to
communicate to your students the store’s procedures, rules, expectation, goals and philosophy. It is the best way to
make sure that a school store is run smoothly and consistently. If a store manual is not available, a lot of time is
spent orienting each new student, and a lot more time explaining procedures over and over to your current students.
Also, much time is spent reviewing or explaining every time an issue is misunderstood, a privilege abused, or a
policy changed.
46
It is recommended that the school principal read the entire handbook and approve its contents before it is printed
and shared with the store employees. This process will aid in gaining administrative approval and assist in
handling behavior problems when they arise. It is also recommended that the manual be placed in a loose-leaf
binder. Then, when a change is needed, all that has to be done is to reprint the section and replace it, rather than
reprinting the entire manual.
This manual should be divided into the following sections:
• Function and Role of School Store
• Store Organization Chart
• Store Employee Job Descriptions
• Policies and Procedures of Operation
• Evaluation
• Store Security Measures
• Inventory Control
• Questionnaire and Proposals
• Space Planning Questionnaire
• Opening Day and Promotional Ideas
As must be the case in every well-organized business, we have prepared a few ground rules that must be observed to
keep us working in the same direction. Rules are necessary to assist us in providing the best possible service to our
customers in the most efficient, orderly and profitable way.
C. Sample Policies
Policy #1—Cashiering
To verify the amount of cash in the drawer, the steps to follow are:
• Count each denomination of coin.
• Record each amount on a verification slip.
• Place coins in proper cash drawer compartments.
• Count each denomination of currency.
• Record each amount on a verification slip.
• Straighten currency so that it is not crumpled.
• Place currency in proper compartments.
• Total change fund accurately.
• Indicate whether change fund balanced.
Making change without a change indicator, the steps to follow are:
• Announce amount of sale clearly to customers.
• Announce amount of cash tendered by customer.
• Place cash tendered on register plate.
• Count change from the cash drawer: smallest to largest; coins first then bills.
• Repeat transaction to customer.
• Count change back to customer correctly:
Coins first, then bills
Combine pennies
Bills face up, and in line
Use least number of coins/bills
• Thank the customer.
• Wait for the customer acknowledgment, and then place tendered money in cash drawer.
• Do this with confidence and poise.
Making change with a change indicator, the steps to follow are:
• Announce the amount of sale to customer.
• Announce the amount of cash tendered by customer.
• Place cash tendered on register plate.
• Index amount tendered into the register.
• Count back “change due to the customer” while removing the money from the register:
Largest to smallest
Bills first, then coins
Use the least number of coin/bills
• Announce the amount of change due to the customer.
• Count back change to the customer–bills first, then coins.
• Thank the customer.
• Wait for the customer acknowledgment, then place the tendered money in the cash drawer.
• Do this with confidence and poise.
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Cash Register Safeguards
• Maintain organized cash drawer:
$20.00 bills on left to $1.00 bills on right
Portrait side up and facing same direction
Large bills under the cash drawer
Coins in descending order
• Remove excess cash.
• Do not allow interruptions, avoid distractions.
• Keep drawer closed when not in use.
• Stay at register position, do not leave unattended.
• Follow proper change making techniques.
• Always place amount tendered on register plate.
• Refuse to be rushed.
Policy #2— Accepting Checks
Accepting checks for payment:
• Checks must be signed, or addressed in front of cashier.
• Examine the check closely. There should be no additions, corrections, and especially no erasures. Also, be
sure that all lines are filled in.
• Check the date. We will not accept a postdated check.
• Check must be written in ink.
• Written amount of check must match numeric amount of check.
• If signature is unreadable, the customer should print name below the signature.
• If check and customer ID are acceptable, place your initials in the front upper left-hand corner of the check.
• Record type of ID used, and identifying number, on the back of the check. Address and phone number of
customer should be on the check.
• No check over $______________ will be accepted.
NOTE: This procedure must be followed for every customer. No exceptions! We need to safeguard against bad
checks. A properly followed procedure will deter bad checks. You also need the practice so that the steps become
second nature to you.
Identification for cashing checks
• Request picture identification, either a driver’s license or state ID card. We will not accept a check without a
picture ID.
• Compare ID description with appearance of customer. Check height and eye color first.
• If you have two picture ID cards, compare information from the two.
Bad Check Procedure
• When a bad check is returned from the bank, retain the check in the assigned place.
• Place it in plastic. The check is evidence, do not soil, fold, staple or alter the check.
• Call the customer. If it is an oversight, the customer will want to make the check good immediately.
• If it is a case of possible forgery, inform the proper school administration, and then call the police. This is a
felony and should be handled promptly.
• If a check is returned due to nonsufficient funds, or there is “no account,” send out a bad check notice if your
initial phone contact is unsuccessful.
Policy #3—Charge Accounts
• Charge accounts may be made available to marketing education students and employees of the building.
• Charge accounts are made available (after application process is complete) for all students and staff for nonfood
merchandise. Establish a credit limit for each customer.
• All merchandise accounts are on a 30-day receivable plan. All delinquent accounts will be immediately
terminated.
Collection of these delinquent accounts may be handled accordingly
• A list of merchandise purchased, date and the amount outstanding is given to customers
• Parents of student customers will be called and informed of the situation. Possible outcomes until account is
remedied are withholding of grades/diploma. If all else fails put the student on the fine list.
• All adult employee accounts will be assigned to the designated school administrator.
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Policy #4 – VISA and MasterCard Policy
• VISA and MasterCard may be accepted at the school store. This procedure should be followed:
• The charge card must be that of the intended user.
• All charge slips must be in ink.
• All charge slips must only be for the amount of the sale.
• All charge slips must have the signature that is registered on the back of the charge card. Also the date of sale
and customer’s phone number must be present on the slip.
• The store manager must approve the charge card slip prior to completion of sale.
• All charges over $__________ must be called in for authorization.
• Check and circle the expiration date.
Charge accounts are at the discretion of each marketing coordinator. Acceptance of debit cards is also
discretionary. Each coordinator will weigh the benefits of the charge plans to their specific operation.
Policy #5 – Pricing
The school store is able to price merchandise at a lower profit margin than stores in the community due to our lower
cost structure for operations. Marketing instructors should be sensitive about their pricing strategy—maintaining a
price structure that is both competitive to common retail prices as well as beneficial to customers on your campus.
The goal is to have a fair pricing structure that also allows us to make a reasonable profit. These profits will fund
all of the DECA-related activities that students participate in throughout the year. Our gross profit margin goal will
be forty percent (40%) in the food department; thirty percent (30%) in gifts; and ten percent (10%) in music-related
items. The manager must approve markdowns. Markdowns must be recorded on a price change slip and recorded
in the daily sales report. The accountant will make the necessary adjustments on the daily revenue report and advise
the marketing coordinator and store manager of these activities.
Policy #6 – Layaway Sales
You may or may not want to have a layaway policy. If you decide to make layaways available, the following
procedure is recommended:
• On a regular sales slip, record the amount of the layaway deposit and the amount due.
• Use a “layaway stamp” and stamp the sales slip.
• Complete the layaway tag completely. The bottom portion is the customer’s receipt. The middle portion is
attached to the original salescheck. The top portion (with string attached) is placed with the merchandise.
• Inform the customer of your layaway policies:
• At least 10% of sale price for the deposit.
• Place the merchandise in a bag with the top portion of the layaway tag attached.
• Place merchandise in the stockroom on a layaway shelf.
• Must be paid for and picked up in 30 days.
• Items not paid for in 30 days, will be forfeited and returned to the store for resale.
• We will make every attempt to contact customer prior to forfeiture of items.
Policy #7 – Approvals
To secure approval on all check cashing, void, refunds, overrings, employee discounts, etc., contact the store
manager or store supervisor.
Policy #8 – Refund Policy
Our policy at the _______________________(store name) is one of satisfaction guaranteed on all of our sales. If
our merchandise is damaged or defective, the customer can request an even exchange, refund or refund with
additional purchase. The store manager must be involved with the cashier/salesperson in these transactions. All
returned or exchanged merchandise must have the original sales receipt/check to verify that the merchandise was
purchased at our store. (No refund will be given without the store manager/supervisor approval.) All merchandise
that is sold as a clearance item will not be eligible for a refund.
Policy #9 – Short Change Complaints
When a customer suggests that a cashier/salesperson or employee of the store has shortchanged them, the store
manager/supervisor will manage the request. The store manager/supervisor will take the name, address, phone
number, and other pertinent information pertaining to the situation. The customer will be informed that the regular
procedure is to investigate the matter by checking the sales receipts and register tapes prior to issuing the refund. If
the request is for a small denomination on the spot sale as .05 cents to .95 cents, the store manager/supervisor has
the authority to issue the refund at the time of the request.
Policy #10 – Overrings and Voids
If a cashier has an overring/void, the store manager/supervisor must be contacted immediately. The overring or void
slip/paperwork must be placed in the register under the cash drawer.
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Policy #11 – Store Hours and Employee Work Schedule
The store will be open following the time schedule posted. Actual work assignments are at the discretion of the
store supervisor (coordinator) and are posted by the store manager. Every employee is expected to know his or her
next day’s work schedule. Work assignments will rotate to give every employee the broadest opportunity for
training experiences. The store operation hours will be established according to the school’s schedule.
Under no circumstances, unless approved by the store supervisor (coordinator) will anyone be allowed in the store
facility.
Policy #12 – Accidents
Here are a few basic safety suggestions which, if followed, will help to minimize and/or eliminate accidents:
• Lift heavy objects by bending at the knees, keeping your back straight and lifting. Ask for help if the object
appears to be too large and heavy.
• Horseplay has been recognized as the greatest single cause of employee injury.
• Cleanliness—make sure objects as glass dividers, razor blades, sharp objects, etc. are not left on merchandise
counters or floors. Keep stock in secured area.
Please contact the store manager/supervisor immediately if an accident should occur.
Policy #13 – Store Maintenance
An element of operations that is often overlooked, even by major retailers is that of regularly scheduled
maintenance. All merchandise should be cleaned and dusted on a regular basis. The floors should be vacuumed and
mopped on a scheduled basis. The cash register should be covered when not in use. This schedule should be
rotated so the same students are not assigned the same jobs all the time.
Policy #14 – Telephone Procedure
The store number is _________________________________.
Many times the phone will ring while the store supervisor is not in the immediate area. As an employee, you must
regard every caller as important.
Some tips to follow if you answer the phone:
• Answer the phone as soon as possible-no more than three rings, if possible.
• Answer the call, using the store name and being courteous. An example would be “Good Morning, The
Hornet’s Nest, Angela speaking, may I help you?”
• If you need to find the person the call is for, do not shout their name across the store, in front of your
customers. Either find some help to assist you or excuse yourself momentarily from your area of
responsibility. If either is not possible, take a message and inform the person that the note will be delivered.
During working hours, only calls related to business will be accepted. All personal calls are not authorized.
When placing a call please follow these procedures:
• If it is an important call, place the call yourself.
• Plan your calls. Have all of your information ready prior to using the phone.
• Know your school number, address, fax number, etc.
• Have paper, pen, and pencil ready. Always identify yourself, talk distinctly, and speak into the receiver.
Remember that:
• You are creating an image for your school/program.
• Say “thank you” at all times when completing a conversation.
• When taking a message, have all pertinent information so it is easy to call the person back.
Policy #15 – Complaints
If a customer complains or is greatly dissatisfied, do not argue with him/her. Remember that the customer is
always right, until proven otherwise. Be a good listener, be considerate, and refer to the store manager or
supervisor. A recommendation would be to respond to the customer: “One moment, please. I am sure Mr./Ms.
________________ will be able to assist you with your concern."
Complaints are normal to any business, but an employee’s attitude and good manners will keep them to a
minimum. A repeat customer is our most valued customer.
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Policy #16 – Public Relations Policies
Lost and Found—any items found in our store operations that do not belong to one of our staff and/or employees
will be kept in a lost and found storage area. Items that may be of significant importance such as jewelry, wallets,
credit cards, etc. will be given to the store supervisor/instructor for immediate investigation and return to its’
rightful owner.
When customers leave their change behind, address accordingly:
• Identify customer’s name, if known.
• Record the date and time change was found.
• Give the change to the store manager/supervisor prior to leaving your shift.
Policy #17 – Checking Employee Belongings
While you are working in the store, as an employee, you should leave your books, purse, and packages of
merchandise in the workroom that is adjacent to the store. There is a coat rack provided for you in the workroom
and it is expected you will utilize it or your locker. Do not wear jackets or coats while on the sales floor.
Policy # 18 – Name Badges, Buttons and Aprons
• Name badges or buttons help create a friendly atmosphere. Customers feel more at ease if they are able to
identify employees by their specific name.
• Every employee will be issued a name badge/button that will be worn at all times while you are on your work
shift.
• Any lost ID badge or button will cost $___________ dollars to replace.
• If you choose an apron as a uniform, color coordinate the apron with the school store colors. This will add to
the professional look.
Policy #19 – Personal Behavior Code
Here are a few general conduct rules actually practiced in business and is expected of you while you are working in
the school store:
• Food and beverage are not to be consumed by employees while on a work shift.
• Gum chewing is not allowed during your work shift.
• Personal business is to be conducted prior to or after your work shift. Schoolwork is not appropriate while you
are working.
• Information regarding any of our sales and costs of operation is to be kept confidential.
• Maintain a businesslike behavior and attitude during your work shift. Any activity identified as horseplay or
behavior that is considered unprofessional will not be tolerated.
• Do not enter the working area until your work shift hour.
• Any notices or messages posted to the bulletin board must be coordinated with the store manager and/or store
supervisor.
• Keep yourself busy and productive during slow times. Ask your store manager if there are other duties or
chores that can be performed. Look for routine tasks that can be done and do it without being asked. This is
considered one of the most important traits of a valued employee. Our most successful students have been
those that look for opportunities to contribute rather than wait to be told.
• Loyalty to your school store operations and employer/employee relations is of critical importance to all of our
success. Each of us will subscribe to a code of ethics and be accountable to each other for our actions. We need
100% cooperation if we are to achieve our goals.
Policy # 20 —Missing Class or Leaving the Building for Store-Related Business
Occasionally, as with other club or class activities, it is necessary for the students to be sent on errands related to
the school store operations. Sometimes it is necessary to keep students in the store, thereby causing them to miss
class.
It is the administration and store policy that students will not miss their class or be off-campus without prior
written approval of the coordinator. The coordinator will follow all rules and regulations of the school that pertains
to managing students accordingly.
Policy #21 —Absence and Tardiness
All business organizations succeed or fail depending upon the quality of the organization personnel and the degree
of “teamwork” they display. When one member of the team is away from the job, everyone else must adjust and
adapt accordingly. If we plan and organize our operations well, the adjustment will be easy and the impact on our
operations will be minimal. However, if students establish patterns of absenteeism and tardiness on a consistent
basis, it puts an unfair amount of workload on everyone else.
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Inform your manager or supervisor as early as possible about your absences. If you have an emergency that prevents
you from being in class or making your work shift, use the phone tree established for such occasions. The more
informed all of us are will help us to make better decisions for our program. All recorded absences and tardiness
will be recorded and managed according to the policies established by the school, as well as policies established for
the school store operations.
Policy #22 —Dress and Appearance
Since the store is a place of business, employees (students) are reminded to dress according to our dress code for
work. An employee’s appearance will have a positive impact on our customers if we dress according to our
guidelines established.
Cleanliness is your own personal responsibility. Take pride in being well-groomed. Since our business demands a
lot of face-to-face contact, good personal hygiene and habits will go a long ways to establishing positive relations
with our customers and staff. Students that are not properly dressed and groomed for work may be relieved of their
duties for that specific shift.
Policy #23 —Grounds for Dismissal from the Program
• Conduct that is not consistent with the established code of conduct policies.
• Evidence and conviction of dishonesty.
• Committing or attempting to commit deliberate damage to the store/class property.
• Excessive absences or tardiness. Guidelines established by school and program.
• Insubordination.
• Negligence in performing duties assigned.
• Granting privileges without proper authorization.
Policy #24 —Student/Employee Performance and Proficiency
• The store supervisor, store manager, or store personnel manager, may, at any time, write a written
documentation addressing employee behavior. Reports must be written and filed anytime a policy has been
broken.
• Employee evaluations are to be completed every two weeks by the store manager and supervisor.
• Your store grade will be added to your class grade to determine your final grade for the semester and year.
• All students will receive a letter grade. There is no pass/fail grade in this program.
D. References
Burrow, J. & Eggland, S. (1995). Marketing Foundations and Functions [pp.505-507]. Cincinnati: South-Western
Publishing Co.
Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (1997). Marketing Essentials (2nd ed.) [pp. 225, 238-239, 354-355].
New York: Glencoe/McGraw-Hill.
Marketing Education Resource Center. (1996). Interpreting Business Policies [Human Relations LAP 25].
Columbus, Ohio: Author.
Marketing Education Resource Center. (1996). Interpreting Business Policies: Instructor Section [Human Relations
LAP 25]. Columbus, Ohio: Author.
Marketing Education Resource Center. (1994). Orienting New Employees [Management LAP 44]. Columbus,
Ohio: Author.
Marketing Education Resource Center. (1988). Orienting New Employees: Instructor Section [Management LAP
44]. Columbus, Ohio: Author.
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XIV.
STORE SECURITY
A. General Guidelines
• School store operations should only take place in a secure surrounding, i.e., secured room, or an office. Make
sure customers cannot reach merchandise or money easily or step behind the counter.
•
Have a security camera installed or require an adult to be present at all times.
•
All school stores need to be using a cash register or a computerized cash register system. No money should be
left exposed at any time, except when receiving payment or giving change to the customer.
•
The school store must be locked when not open for business. All opportunities for theft must be considered and
preventative measures need to be taken. It is also recommended that only the adult supervisor have a key to the
school store. If anyone else has a key then you cannot be held responsible for any theft that may occur. If the
administration insists on having a key then you should write a letter to the principal stating that you will not
be responsible for theft that may occur because of an unlocked door.
•
The school store should never be unattended during business hours.
The marketing teacher is responsible for opening and closing the store operations. Working with your
administration, there must be clear guidelines for the following situations:
•
Personnel that are authorized to have access to the store during off-hours. The administration is also included
in this area since they have master keys to all buildings. The issue of liability must be addressed prior to
incidents of vandalism, theft, damage, etc., which may occur.
•
Using the store facility for other activities associated with club or athletic functions. The marketing coordinator
must be involved in all these decisions.
B. Security Equipment
Work with your school administration on the selection and purchasing of the school store security equipment.
Also, your advisory committee will be able to make excellent recommendations regarding their own business
security system that was selected. Ultimately, your budget will determine your initial investment. Establishing a
short-term and long-term plan might be your best effort at getting your store operational. The use of video cameras
and monitors appear to be the most common approach to serving security needs for businesses.
Scanners on registers are used in most retail operations. One recommendation for scanners is to purchase one
strictly for the receiving of merchandise. This greatly decreases the time used for managing shipments from
vendors.
When possible, installation of one way mirrors and/or windows from your office and/or storage room to your school
store sales area should be utilized.
C. Supervision of Workers
An adult (teacher or an aid) needs to supervise students in the school store at all times. It is important that the adult
helps select and schedule the workers.
D. Loss Prevention
The following is a quick loss prevention needs assessment. Can you answer yes to these questions?
1.
Are your price tags secure and legible?
2.
Do you check merchandise received against original orders and invoices?
3.
Is your check-in area secure? Can the employees hide items?
4.
Do you check register detail tapes for unauthorized voids and unauthorized no-sales?
5.
Do you keep check out areas moving? Failure to keep customers moving can be a security problem. Long lines
at checkout counters provide customers an excellent opportunity to pocket open display merchandise.
6.
Are registers locked and keys removed when registers are unattended?
7.
Is merchandise handled carefully by employees to prevent damage and breakage?
53
8.
Do you have a policy on interior displays and their arrangement? Well set-up displays and stock arrangement
discourage theft.
9.
How do you handle salvage goods? Do you have a system set up which will prevent good merchandise from
being stolen under the pretense that it is damaged? (Candy, broken bars is a prime area)
10. Do you have a policy on wearing large coats, purses, and bags into the store? It might be necessary to provide a
coat and bag check-in area.
11. Do you maintain tight controls over access to the stockroom?
12. Do you have a policy on employee purchases?
13. Do your employees give your customers plenty of attention?
14. Have you established a policy for employee discounts?
15. Do you hold your cashiers accountable for all register transactions? (Shortages, overages, voids, refunds)
16. Do you require management approval for refunds?
17. Have you established a store policy on the handling of checks?
18. Do you have a layaway policy? Do you have a secure layaway storage area?
19. Do you offer rewards for identifying shoplifters?
20. Have you removed all possible opportunity for losses?
Loss prevention can also be addressed through policies.
Employee Discounts
Discounts given as awards for promotions, completion of first year of marketing, can discourage internal theft.
The store manager is in the best position to determine when a discount will benefit the program. Discount
incentives should be attainable goals, not so far out of reach that students become frustrated when they are
unable to achieve them.
Employee Purchases
Serious consideration should be given to when employees of the store can make purchases. This simple
transaction can open up a number of problems. Some possible solutions or preventions to consider are:
• Do not allow students to write up or ring up their own purchases.
• Do not allow any employee to purchase goods during their work shift.
• The store manager must approve all employee purchases.
Shoplifting Prevention
• Small items should be in a display case.
• Valuable items in a locked display case.
• Remove hangers from apparel after each sale.
• Do not use tall and/or long displays.
• Customers must not be allowed into secured or sales areas.
• Keep merchandise in neat and orderly arrangements.
• Avoid visiting and socializing with friends that will cause distractions during your work shift.
• Breakdown all boxes not in use—they can be used to hide merchandise and taken out to the trash area for
distribution.
• Greet and meet every customer with eye contact. They know when you are aware of their presence in the store.
Shoplifting Apprehension
• Pay close attention to customer’s body language. Looking around, fidgeting, hanging around with no purpose
in mind are some of the signs of concern.
• Inform other employees/manager of the possible shoplifter. Watch closely.
• Remember that theft does not occur until the customer leaves the store. Only then, are you able to approach the
customer regarding theft.
• Approach suspect, address them, and inform them of who you are.
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•
•
•
Do not accuse suspect of stealing; inform them that payment for the merchandise is needed prior to them
leaving with the item. Give them a chance to pay for it—it might be an honest mistake.
If suspect refuses to return with the merchandise, collect as much information about them as possible and report
it to the store manager/supervisor.
Do not use any physical force. Do not put yourself in harms way.
Store Access
Access to the store should be as limited as possible. A recommendation would be to provide access to the
custodians (unless your students provide daily cleaning), administration, and the marketing coordinator). A letter
of agreement should be drafted between you and the principal, authorizing the distribution of keys and access to the
school store. This will limit your liability as an instructor when and if damages occur during off-hours. The
marketing coordinator should be accountable only during normal operating hours.
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